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Japan’s Nikkei Moves Away from Topix

The ratio between the Nikkei 225 and Topix, Japan’s best-known stock gauges, hit close to a 40-year high. Coronavirus concerns have weakened the global economy.

The Nikkei stock index plunged below 20,000 amid coronavirus spread in Europe and the United States. Sentiment also suffered from a slide in crude oil as Saudi Arabia cut oil prices. The firing of North Korea’s three unidentified projectiles toward the Sea of Japan on Monday also contributed to the drop.

The Nikkei/Topix Ratio

Dividing the level of the 225 average by that of the Topix index produces the NTR.

The 225 is a group that tracks Japan’s biggest companies. Meanwhile, the Topix index constituents cover every part of the domestic company, including regional banks.

The ratio has risen most in the past two years with the highest last week.

The 225-issue average fell 1,276.68 points, or 6.15 percent to 19,473.07 from Friday. Topix was down 89.35 points or 6.07 at 1,382.11.

Domestic companies have suffered over Japan’s demographics, tax increases, deflation, and the coronavirus affecting investor sentiment.


Nikkei Loses Points in the Stock Market

The Nikkei stock index plunged over 1200 points. Mining, oil, coal product, iron, and steel issues have lost ground. The stronger yen has hit automakers in the export industry, cutting their overseas profits.

The situation has worsened in Italy with the virus cases surging to over 7,300 cases. The Italian government has ordered a large-scale lockdown in the northern part of Italy, including Milan.

In the United States, New York has declared a state of emergency.

Declining Stocks and One Japan Stock Surviving the Rout

Yutaka Miura, a senior technical analyst at Mizuho Securities, thinks the 225 declines will stop at around 19,000 level.

He said risk-off mood strengthened in the financial markets and a plunge in oil prices added to the sluggish sentiment. This, he added, could trigger investors’ fears the New York Dow will drop again tonight.

Stock Trading reports, there was one 225 stock that rose as much as 3.5%. Amid the market chaos in Tokyo on Monday, Nicherei showed a positive number, with the broader index plunging 4.5%.

The maker of frozen chicken nuggets and fried rice Nicherei Corporation benefits from the outbreak. Parents struggle to keep their children fed at their homes as the government ordered schools to shut due to the outbreak.

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