2024-02-22 23:00:00
▶’While You Were Sleeping’ We curate major news that occurred overseas until dawn. Fortune Korea’s AI reporter (using GPT-4) selects issues reported by two or more of the 23 foreign media outlets, and summarizes and introduces them together with global reporter Jeon Yu-won.
Nikkei, Japan’s representative stock index, recorded an extraordinary rise, surpassing its all-time high set in 1989.
The Nikkei average stock price, which consists of 225 stocks, broke its previous record on Thursday amid active trading in the stock market, thanks to continued investment enthusiasm from overseas investors. At the close of trading, the Nikkei soared to 39,098.68, surpassing the previous high of 38,957.44 and the closing record high of 38,915.87.
In particular, last Friday, the index exceeded the 38,800 level and finally closed at 38,487.24, up 329.30 points from the previous day.
It is analyzed that this upward trend was due to the weakening yen. As the value of the yen has fallen, Japan’s overseas purchasing power has decreased, but at the same time, its investment attractiveness to overseas investors has increased.
This trend has further increased the attractiveness of the stock market as the Japanese government emphasizes corporate governance reform. Meanwhile, while the financial market was doing well, the weakening yen caused Japan to fall from its position as the world’s third-largest economy in dollar terms, according to the International Monetary Fund (IMF). In addition, Japan’s gross domestic product (GDP) has continued to decline, entering a technical recession, but experts still assess that the fundamentals of the Japanese economy are solid. The rise of the Nikkei index is evaluated as a moment in which new history was written since 1989, an economic boom period called the ‘bubble era’.
Reporter Jeon Yu-won yuwonchun@fortunekorea.co.kr
<용어 해설>
1. Nikkei:
It is one of Japan’s major stock indices and represents the overall trend of the stock market.
2. Deflation:
It refers to a continuous decline in prices in an economy, causing consumers to postpone purchases in the expectation that prices will fall further.
3. Technical recession:
A term used when the gross domestic product (GDP) has shown negative growth for two consecutive quarters, indicating the state of the economy.
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