Nikkei225 futures up 1% due to impressive yen depreciation

Following the sharp depreciation of the Japanese yen, Japanese stocks are also expected to launch with strong increases. However, the situation in other Asian markets remains mixed. Investors are evaluating whether measures to stimulate the Chinese economy and actions to combat COVID-19 will be effective.

The yen dropped to nine – a month low amid concerns that Japan’s economy is about to enter a recession. Chinese incentives have reduced the need for safe haven assets. Japan’s futures are up about 1%.

Sentiment among investors suggests that they are still confident in successfully managing the virus situation. Their hope is that the effects on the global economy will also be short-term.

Elsewhere, Hang Seng’s futures are minimal, ASX200’s up 0.2%.

Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.

 Trader Martin Nikolov

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