The Japanese stock Markets have done fairly good yesterday when compared to the past few days during this week. Reason being a very good performance by the US stock market, clearly showing closely tied economic prospects between the two stock markets.
Firstly the US market had a good run yesterday after the news that the Federal Reserve may cut interest rates in the coming year and also that the slowdown in the US economy may after all end in six months time, showing signs of improvement. Since many Japanese companies have their stocks listed on the major US indexes it was seen that investors were convinced to buy export-focused stocks in particular, however Japan’s domestically focused sectors were also strong showing lot of interest in the Asian country’s stock.
I feel that this is a very good sign for both these giant economies and a positive sign to boost consumer confidence.
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