Connect with us

Hi, what are you looking for?


Here’s why the Nikkei 225 index could spike to ¥30,000

The Nikkei 225 index has been in a strong bullish trend in the past few weeks after Japan stocks received a thumb of approval from Warren Buffett. The index jumped to a high of ¥28,678, the highest point since March 9 of this year. It has soared by more than 11% from the lowest level this year.

Warren Buffett’s Japan investments

The most recent Japan news was a visit by Warren Buffett, one of the biggest investors in the world. In an interview, with CNBC, Buffett talked about his investments in Japan’s saga shoshas. He started investing in the five companies – Marubeni, Itochu, Mitsubishi, Sumitomo, and Mitsui – in 2020. In that period, he has made a profit of over $4 billion, even after accounting for the weakness in the Japanese yen.

Warren Buffett has committed to invest more money in Japan. And to do that, he has announced a bond sale worth about $1.2 billion to invest in these companies. Therefore, this means that some foreign investors will likely invest in Japan. One of these investors is Man Group, a leading UK hedge fund, which has started investing in Japan stocks. In a statement, Jeff Atherton of Man Group said:

“The news of Buffett’s investment has an effect on sentiment, but also hopefully an effect on foreign money actually coming into Japan, which hasn’t happened for many years.”

Many Nikkei 225 index constituents have been in the green in 2023. Kobe Steel share price has jumped by more than 61.5% this year, making it the best-performing stocks. Dai Nippon Printing, Toppan Printing, Yokohama Rubber, and Advantest Corp shares have jumped by more than 30% this year. 

Japan’s sogo shoshas have also risen this year as Warren Buffett has boosted his stakes. Marubeni stock has risen by 27% while Mitsubishi, Mitsui, and Sumitomo have all jumped by double digits. 

On the other hand, the worst performers in the Nikkei index are Sumitomo Dainippon Pharma, Dai-ichi Life, Eisai, Fujikura, Recruit, Softbank, which have dropped by more than 8%.

Nikkei 225 index technical analysis

Nikkei index chart by TradingView

The 4H chart shows that the Nikkei index has been in a bullish trend in the past few months. This is in line with other global indices like the Euro Stoxx 50, which I wrote about here. It has moved above the 25-day and 50-day exponential moving averages (EMA) while the Relative Strength Index (RSI) and Stochastics have risen. Therefore, there is a likelihood that the Nikkei index will have a bullish breakout as buyers target the psychological level at ¥30,000.

The post Here’s why the Nikkei 225 index could spike to ¥30,000 appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Rep. Jennifer Wexton (D-Va.) announced on Tuesday that she has been diagnosed with Parkinson’s Disease. “If there’s one thing that Democrats and Republicans can...

    Latest News

    After Dianne Feinstein announced she’d contracted the shingles in early March, her staff said she planned to return to the Senate within a matter...


    A U.S. District Court judge has ruled that Elizabeth Holmes, founder and CEO of the disgraced blood-testing company Theranos, cannot remain free on bail...

    Latest News

    SEOUL, South Korea — When a group of American lawmakers arrived in South Korea for meetings with government and military officials, President Yoon Suk-yeol...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.