The Nikkei has fallen dramatically again today (June 13th), with the index losing more than six per cent of its value over the course of the day.
Its five-and-a-half year peaks last month now seem a long time ago and the market is at its lowest level since April after dropping by 6.4 per cent in today's trading.
The year had started very brightly for the Nikkei, but its strong gains have been steadily eroded during the decline of the last month.
It rose by more than 80 per cent between mid-November and mid-May, completing a superb six months for the index, but May 23rd marked the turning point when it lost over seven per cent.
"There were a lot of people who were playing the higher stocks, weaker yen trade, and they're reversing out of that. But there are a lot of people who haven't got out yet, so it could fall further," Koji Fukaya, chief executive officer at FPG Securities, told Reuters.
The Nikkei lost just 0.2 per cent yesterday, so today's massive slide has made it a bad week for the index.
Learn about the Asian markets and CFD trading at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.