After the slump of Yen, the Japanese stocks went ahead, mainly led by the carmakers. Ryuzo Miyao, who is a member of the board of the Bank of Japan, stated that the policy of the bank of expanding the monetary base helps in weakening the currency. The benchmark gauge Topix Index saw an increase of 1.2% at the close and it is at 1,168.27. In the last 3 days, the Topic index has experienced a slump of 9.6%. Still, the gauge has gained around 36% in 2013. On the other hand, the Nikkei 225 Index went ahead by 1.2% on today and the same is at now 14,311.98.
According to the Fund Manager of Fukoku Mutual Life Insurance, Ichiro Yamada, the decline of Yen triggered a rebound from the sharp slide that started right on last week. If it is considered that how much the stocks slumped, rebound may seem like a bit anemic; however, the market has surely stabilized now.
On 23rd May, the Topix experienced a fall of 6.9%, which is the most since the aftermath of the natural and nuclear disasters experienced in March, 2011. On yesterday, the gauge closed within half a percentage point from correction which is defined as a 10% decline from the recent high experienced by the same. Amidst unprecedented bond buying of the Bank of Japan, the gauge closed at the highest level on 22nd May, since 11th August, 2008.
Among companies, Mazda Motor Corp., increased by 6.5% as each of the share is currently priced at 428 Yen. Toyota Motor Corp., which is the largest carmaker in the world, increased by 4.9% and each share is now at 6,210 Yen. Mitsubishi Motors jumped up by 14% as each share is now at 168 Yen.
Yen went down against most of its major counterparts on today and carmakers increased the most if all of the 33 industry groups of the Topic are taken into consideration. Incidentally, if Yen gets weaker, that boosts the value of the overseas earnings at the Japanese exporters.
Tokyo Electric Power experienced a decline of 6% and each share is currently priced at 612 Yen. Even on yesterday, shares of the company went down by 7.3%. The Nikkei Stock Average Volatility Index declined by 3.9% and the same is now at 37.08. The benchmark gauge can swing by 11% in next 30 days.