Daily Management Review

Japanese index jump to its peak of 1991 as economy climbs up after COVID-19


Quotations on the Tokyo Stock Exchange rose on Monday amid signs that the Japanese economy is recovering from the crisis caused by the COVID-19 pandemic, Kyodo agency reported.

According to its data, in the first 15 minutes of trading the key Nikkei index, which reflects the dynamics of quotations of shares of 225 leading companies in Japan, jumped by 1.16% or 295.44 points compared to Friday, reaching 25 681.31 points. This is the highest mark since June 4, 1991.

The Topix Index, which captures the quotations of all companies represented in the prestigious First Section, rose by 17.84 points, or 1.05%, to 1721.06 points.

The growth of shares was observed, in particular, in maritime transport companies and the banking sector.

Japan's economy grew 21.4% year over year from July to September 2020, showing a recovery from the crisis caused by the coronavirus pandemic, according to preliminary government data released on Monday.

Gross Domestic Product (GDP) growth was 5% compared to the previous quarter, seasonally adjusted. However, GDP in real terms declined by 5.8% compared to the same period in 2019.

In Japan, domestic demand has been growing at a rate of 2% for the quarter and is forecast to increase to 8% for the year.

For the three consecutive quarters in a row, Japan has been experiencing the strongest decline in GDP since 1955, influenced by measures against the spread of COVID-19.

source: kyodonews.jp