Nikkei fall 8216 was a blip 8217

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.

Learn about the Asian markets and CFD trading at City Index

StoneX Financial Ltd (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.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.