Nikkei fall ‘was a blip’

<p>Yesterday’s massive drop for the Nikkei will be viewed as a blip.</p>

The Nikkei is not going to return to the levels of six months ago in the wake of the 7.3 per cent drop recorded by the index yesterday (May 23rd).

Chris Towner, director at foreign currency exchange broker HIFX, noted investors are likely to see the fall in the index's value in yesterday's' trading as a "blip".

Indeed, the Nikkei has already started to bounce back from those losses and at 07:45 BST today it was up by almost one per cent, having been down 1.8 per cent earlier in the day.

Mr Towner highlighted the fact that the one-day drop in the Nikkei's value is one of the most "aggressive" falls to have been seen on the world markets for a while.

"What this move demonstrates is that there is some gravity to Abenomics and markets never just go in one direction and investors can get caught out," he said.

Abenomics refers to the monetary policy decisions made by the new Japanese prime minister Shinzo Abe, who has also presided over a weakening of the yen.

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