Japanese Stocks Lead as U.S. Bonds Fluctuate and Commodities Decline
The second week of 2024 has seen a mix of movements in the global financial markets, with Japanese stocks taking the lead while U.S. bonds fluctuated and black commodities declined.
On the stock market, Japanese stocks rose 6.6% as expectations of the Bank of Japan turning hawkish cooled. The surge in Nvidia’s stock also boosted the Nasdaq, which rose 3.1% for the week.
Meanwhile, on the bond market, U.S. inflation data for December came in higher than expected, leading to fluctuations in U.S. bonds. The U.S. 10-year Treasury bond yields eventually fell by 10 basis points.
In terms of commodities, iron ore and coke, both black commodities, performed poorly. Iron ore, which initially performed well, saw a decline due to weakening supply and demand fundamentals as well as cooling speculative sentiment. This led to steel mills entering the off-season for consumption, causing black commodities such as coking coal and rebar to suffer at the bottom. Inflation data also impacted the international gold price, causing it to fluctuate under pressure.
In the foreign exchange market, the dollar experienced volatility, with the Japanese yen weakening by 0.2% against the dollar.
The corresponding domestic global ETF/LOF products also saw significant movements, with the Nikkei ETF surging by 12% and the trading premium in the transaction price increasing from 3.75% to about 9%. This indicates a positive attitude from domestic investors towards Japanese stocks.
It’s important to note that this article does not constitute personal investment advice, and individuals should consider their own circumstances and risks when making investment decisions. Market risks should be approached with caution, and investment decisions should be made at the individual’s own risk.