Japanese shares went down on today as the benchmark stock gauge Topix Index deepened the correction. The Japanese Prime Minister Shinzo Abe gave a speech on the growth strategy of the country and the same disappointed the investors. Yen, the major currency of Japan strengthened because of the same as well.
The Topix experienced a decline of 3.2% on today and the same is currently at 1,090.03. In the afternoon session, when Abe started his speech, the Topix experienced an initial rise of 1.2%; however, at a later point of time, it pared the gains. On the other hand, the Nikkei 225 Stock Average went down by 3.8% and the same is currently at 13,014.87. The trading volume is 5.7% less in comparison with the average of the last 30 days. Other than that, the major currency of Japan, Yen went ahead and it is currently at 99.59 per USD. Earlier, Yen weakened to 100.46.
According to the Strategist of Sumitomo Mitsui Trust Bank Ltd., Ayako Sera, the expectations on the theories of Abe should be reduced now. Sera added that the initiatives are pretty small. Though the direction taken by Abe is correct, however, whatever comments he made, all are for long term. According to Sera, things are expected to move pretty slowly at this point of time. Incidentally, the speech given by Abe outlined his growth strategy. This is called as the third arrow of his economic revival plan which seeks to build on the first two arrows: monetary and fiscal stimulus.
Shinzo Abe, in his latest speech announced that he will be using all possible means for proper promotion of private sector investment and he will remove all the barriers to the corporate activity as well. Apart from that, Abe took vow to open up the energy, infrastructure and health sectors. The foreign investment in Japan, incidentally, is expected to double to 35 trillion Yen by end of this decade.
According to economists, the Topix Index will reach 1,231 by end of 2013. If this happens, that will be a gain of 13% from the closing value of today. On today, 32 out of the 33 industry groups, part of the Topix Index experienced fall. Declines were led by various industry groups such as consumer lenders, brokerages, insurers and utilities. The biggest drag of today was the exporters.