The Nikkei 225 index held steady on Thursday even as worries about inflation jumped. The index rose to a high of ¥27,431, which is close to the highest level since April 2022. It has risen by about 6.6% from its lowest level in May and about 10% above the lowest point in March. This performance is in contrast to the significant decline of American indices like the Dow Jones and Nasdaq 100.
The Nikkei index has been in a steady recovery in the past few weeks as investors cheer Japan’s reopening plans. Government officials have announced that they will consider raising the daily entry cap to more than 30,000 in July. This happened after the government raised the cap from 10,000 to 20,000. As a result, analysts expect that this reopening will lead to better performance of companies.
Global equities are wavering as central banks continue tightening policies. The Fed has already started implementing its quantitative tightening policy as it boosts rates. Others like the Bank of Canada and Bank of England have been hiking rates aggressively.
The best performer in the Nikkei 225 index was Taiyo Yuden, whose stock rose by more than 5.85%. It was followed by Tokyo Electric Power, Mitsubishi Motors, Fast Retailing, Konica Minolta, and Takashimaya among others. On the other hand, the worst performers are Fujitsu, Astellas Pharma, Trend Micro, Sony, and Takeda Pharmaceuticals.