(VIANEWS) – Nikkei 225 (N225) is currently on bearish momentum. At 02:08 EST on Monday, 3 October, Nikkei 225 (N225) is at 26,155.34, 5.3% down since the last session’s close.
Why is Nikkei 225 index going down?
The Nikkei 225 index is highly sensitive to global events such as political unrest, war, and economic news. It also reacts to natural disasters. Other factors that affect the Nikkei are interest rate increases and unemployment rates. The Dollar Index also plays a role in the Nikkei’s performance.
The recent decline in the Nikkei 225 index was caused by fears of a global economic slowdown. Fears of a credit crunch led investors to sell financial stocks, automakers, and other export-dependent companies. As a result, the Nikkei 225 index fell to its lowest level since 1982. Fortunately, the Japanese government responded to the fears by announcing economic stimulus measures, which encouraged stock purchases.
The decline in the Nikkei 225 was also fueled by falling stock prices in China. After 10:30am Japan time, trading on the Shanghai Composite Index was suspended. This resulted in a sell-off in Nikkei 225 futures. This caused the market to plunge further. It reached a new record low of 11,489 yen in afternoon trading, but closed at a lower level than Friday’s close.
While it’s difficult to buy directly into the Nikkei index, you can follow it through exchange-traded funds (ETFs). Among the largest Nikkei 225 ETFs are Blackrock’s iShares Nikkei 225, Nomura Asset Management’s Nikkei 225 ETF, and the MAXIS Nikkei 225 Index ETF, which trades on the New York Stock Exchange.
Nikkei 225 Range
Regarding Nikkei 225’s daily highs and lows, it’s 1.36% up from its trailing 30 days low of $25,805.60 and 8.74% down from its trailing 30 days high of $28,659.80.
About Nikkei 225’s yearly highs and lows, it’s 5.97% up from its 52-week low and 12.7% down from its 52-week high.
Index Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, Nikkei 225’s is considered to be overbought (>=80).
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