The Dow Jones and the NASDAQ have released their respective stock indexes following the Japanese stock market’s unprecedented plunge. The Nikkei 225 and the ASX 200 fell significantly, which means that investors all over the world must pay attention to the market and try to understand what this means for their businesses.
This market crash is a direct result of the Japanese central bank’s move on September 11th. They made a surprise decision to devalue their currency and raise interest rates to attempt to prevent the country from experiencing a third consecutive economic slowdown in six years. With the increase in consumer prices, and Japan’s dwindling export market, the country’s economy is now on the verge of collapse. However, even though this may be the most dramatic market collapse in Japan’s history, this is not necessarily a sign of the end of the market.
The real problem lies in how this move was done, and what this means for the future of the Japanese economy. For many years, the central bank of Japan had tried to manipulate its currency by raising interest rates and reducing the amount of money that it was spending on imports.
However, when they announced the new measure, the Japanese central bank said that it would allow the yen to weaken against the dollar so that it would eventually fall below 100 against the euro. The central bank said that the new policy would stabilize the market and prevent any unnecessary chaos from breaking out. The Japanese stock market however, has been affected by this news as well as the weakening of the yen.
When the news first broke, the Nikkei 225 and NASDAQ were both above 15, which is considered to be an upward swing in the Japanese economy. In addition to this, the Nikkei 225 has more than doubled since early July. The NASDAQ meanwhile, has remained steady but has dropped over five percent during this time.
Japan is still considered to be one of the major economies in the world, so any drop in the country’s economic status will definitely affect the international market. However, the question is whether this is enough of an effect to warrant the drastic move that the Japanese central bank made.
Many analysts believe that the central bank’s actions did more harm than good in terms of the market, and that Japan’s ability to play a leading role in the world economy will be severely affected. For this reason, investors must now pay closer attention to what the future holds for Japan. While some analysts say that the move was a bad move, others agree with some of the central bank’s reasoning. If this is indeed the case, then the market could very well take a turn for the worst, possibly leading to a long period of political turmoil.
However, for now, this stock market meltdown does give us a glimpse into the problems that the Japanese economy is going through, and it will certainly provide some insight into what the market will likely face over the next few years. The current market collapse may lead to some big changes in Japan and the direction it is taking. However, it is impossible to tell at this point, and the Japanese economy could very well bounce back from the financial crisis.
It is also difficult to tell if the central bank’s move will have a lasting impact on the Japanese economy or not, as the effects of global markets always fade after a while. However, it will be interesting to watch how the markets in other countries react to the Japanese market meltdown, and how the stock market is affected by the news.
As mentioned earlier, the market is suffering badly from the news, and some analysts are even claiming that the Dow Jones’ Japanese index will fall further during the rest of the month. However, some analysts are predicting that the Japanese market will continue to rise due to the fact that many investors are betting that the Japanese economy will bounce back in no time.
The stock market in Japan is expected to remain flat until September, as investors continue to be worried about how the government will handle the situation. However, there is a possibility that the country could fall back into recession after the government has calmed down. This is especially possible in light of the recent scandals that have come out of China, and this could make the Japanese economy even weaker than it is right now.