The Nikkei had been on a tear, closing higher for a record-breaking 16th straight session and setting a fresh year high on Tuesday. Until Monday, the Nikkei 's previous record streak was a day period set on Jan. The day win streak is also the longest streak of any kind — winning or losing — made by the Nikkei That had last been set in May, , when it fell for 15 continuous days.
This time around, the index had climbed in the lead up to Japan's Oct. Abe's subsequent resounding win pointed to the status quo being retained in terms of the prime minister's Abenomics program, which involves the "three arrows" hyper-easy monetary policy, fiscal stimulus and structural reform.
Critics have long lamented that the last of those three arrows has not taken place at a fast enough pace. Still, some analysts said Abe's consolidation of power at the recent election implied good news for equity markets. Although near-term profit-taking was likely, the election "result is fundamentally positive for the equity market as political stability should be restored," analysts at Bank of America Merrill Lynch said in an Oct.
We believe the election result reduces one key risk factor of political stability and supports the equity market over the medium term. Other factors that have driven the Nikkei 's rally include strength in the U. The Nikkei closed down 0. The index had dropped some 66 points in the span of six minutes in afternoon trade after holding just above the flat line for the morning session. Ahead, analysts indicated that there might not be a ton of room left for the index to climb further.
The analysts had previously forecast the Nikkei share average to trade between a range of 20, and 21, through , but had revised their outlook after the index surpassed the top-end of the range on Oct. Sweeting and Alan Chua, director of portfolio management and portfolio manager respectively at Templeton Global Equity Group, indicated that there were long-term challenges ahead for Japan given its "heavy reliance on massive monetary easing, central bank Those purchases "raise[d] the risk of reduced liquidity and increased volatility at some point down the road," the analysts cautioned.
While the Nikkei remained far off its all-time high of 38, set in December , the index has risen All good things come to an end: Japan's benchmark just finished its longest ever win streak The Nikkei closed lower on Wednesday, ending a day win streak Japanese markets climbed in the lead up to and following the Oct. Pedestrians stand in front of an electronic stocks indicator displaying share prices of the Tokyo Stock Exchange in Tokyo on Oct.
Still, the share average's win streak had been something of a feat. Don't be fooled by Japan's stock market rally: For comparison, the Nikkei closed at 21, Cheang Ming News Assistant. Download the latest Flash player and try again.More...