Miner Company
Why Japan's Nikkei 225 Can Stage A Minor Recovery After Its 4-Day Plunge
Oil shock drove the sell-off: Since the start of the US-Iran War, Japan's Nikkei 225 fell 6.1% in four days, underperforming global peers as Japan's heavy reliance on imported oil heightens stagflation risks. Yield curve shift may support equities: A bull steepening of the Japanese government bond yield curve (10-yr minus 2-yr), partly driven by expectations of a less hawkish Bank of Japan, historically correlates with upside momentum in the Nikkei and may support a short-term rebound.
Oil shock drove the sell-off: Since the start of the US-Iran War, Japan's Nikkei 225 fell 6.1% in four days, underperforming global peers as Japan's heavy reliance on imported oil heightens stagflation risks. Yield curve shift may support equities: A bull steepening of the Japanese government bond yield curve (10-yr minus 2-yr), partly driven by expectations of a less hawkish Bank of Japan, historically correlates with upside momentum in the Nikkei and may support a short-term rebound.