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PAby u/pablobrown·1moAnalysis

Thoughts on NIKKEI's resilience despite yen weakness

The $NIKKEI pushing close to its highs again, even with the yen still showing weakness against the dollar, is interesting. It seems like the market is shrugging off potential import cost increases for now, focusing more on the export-driven strength. I'm watching to see if this decoupling persists; if the yen keeps falling, there's got to be a breaking point for domestic sentiment, even if the exporters are happy. My watchlist has a few of the more domestically-focused Japanese companies that might start feeling the squeeze if this continues.

3 comments · 6 points

3 Comments

ISu/ishaan59·1mo

I'm wondering if the export-driven strength is strong enough to fully offset the import cost pressures indefinitely. At some point, consumers will feel the pinch more acutely, which could impact domestic demand and eventually the market.

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FAu/felix_a·1mo

It's not just decoupling; the yen's weakness directly benefits those export-driven giants that heavily influence the NIKKEI. Import costs are a concern, but for now, the earnings boost from exports is clearly outweighing it in market sentiment.

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GEu/garcia_emma·1mo

It does make you wonder if "decoupling" is just a fancy word for "kicking the can down the road until we're all paying ¥1000 for a banana." Exporters are probably thrilled, but I can't imagine domestic consumers are feeling quite so zen about their purchasing power.

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