US central bank cuts interest rates, Japanese stock market thrives

Trading at the Tokyo Stock Exchange was bustling early this morning (September 19), with most stocks increasing significantly. At one point, the Nikkei Stock Average rose by 1,000 Yen. At the close of the morning session, the Nikkei index rose by more than 904 Yen to over 37,282 Yen.

As a result, the Tokyo Price Index (TOPIK) also increased by more than 60 points to 2,625.46 points, with trading volume increasing to 900.16 million shares. According to experts, this optimistic sentiment of the market is due to the FED's interest rate cut of up to 0.5%, twice as high as investors' expectation of 0.25%.

Tokyo Stock Exchange

“Although it is still too early to draw conclusions, the decline in interest rates and the subsequent market recovery were predicted in advance. Furthermore, from the perspective of high-tech stocks that have increased rapidly in a short period of time, it can be said that the period when investors paused to wait for opportunities has passed. Of course, since the Japanese market is heavily dependent on the US economic situation, it is still necessary to closely monitor the upcoming fluctuations. However, in the short term, it can be affirmed that the market will continue to rise,” said Ms. Fujita Naoko, a market analyst.

However, like an unchangeable law that is difficult to explain, while the stock market is booming, the value of the Japanese Yen is falling deeper and faster than expected. Also this morning, the exchange rate between the Japanese Yen and the USD recorded a new level of 144 Yen/USD, down nearly 5 Yen compared to the level of 139 Yen at the beginning of the week. This is also considered a factor that makes investors have to be more vigilant.

Source: https://vov.vn/thi-truong/my-ha-san-lai-suat-thi-truong-chung-khoan-nhat-ban-khoi-sac-post1122583.vov