Before the bell: Topix is Top

The Japanese stock markets are performing strongly again this morning, while European exchanges are set to reopen for trading after a three-day break.

On Boxing Day, Wall Street remained open, but there wasn’t much action. A newspaper referred to it as a “Christmas hangover,” which seems exaggerated. Both the S&P 500 and Nasdaq ended flat—after all, it can’t be a party every day. The number of new jobless claims in the U.S. slightly declined last week, defying expectations of a small increase, signaling continued resilience in the job market. Meanwhile, Mastercard confirmed that U.S. consumers weren’t stingy with their Christmas shopping, spending 3.8% more than last year. Online sales saw an even larger increase of 6.7%. European stock markets will reopen today, though trading volumes are expected to remain below average.

In Asia, the markets are gaining ground this morning. The Hong Kong stock market is flat despite the World Bank raising its forecast for the Chinese economy yesterday. The standout performer is once again the Tokyo stock exchange. The Topix is up 1.2%, and the Nikkei is climbing 1.8%. This time, automotive stocks aren’t leading the charge. Nissan, for example, is down 9.5% after five hours of trading, despite gaining 16.4% on Wall Street yesterday.

Reduced tensions, increased tourism

Nobody likes uncertainty, including investors. While some forms of uncertainty can’t be avoided, geopolitical tensions can sometimes be mitigated through diplomacy. The Japanese Foreign Minister’s recent visit to his Chinese counterpart and the Chinese Premier seems to have positively impacted relations between the two nations. Japan is already easing visa requirements for Chinese tourists. Retailers like Isetan Mitsukoshi Holdings (+1.6%) are welcoming this development, as the company operates department stores comparable to Belgium’s Inno. Increased tourism from China is also good news for The Oriental Land Company (+1.5%), which manages Disney theme parks in Japan.

4 trillion dollars

Apple (+0.3%) closed at a record high yesterday, with its stock price now at 259 dollars, up 34% year-to-date. Investors who bought the stock in April at 165 dollars are enjoying gains of 57%. Unfortunately for Warren Buffett, the legendary investor has already traded a significant portion of his Apple shares for cash. An analyst raised Apple’s price target to 325 dollars, citing AI applications as a key driver encouraging iPhone users to upgrade to newer models. If Apple’s stock climbs another 2%, its market capitalization will hit 4 trillion dollars.

Did you know…

the Turkish central bank lowered its interest rate by 250 basis points yesterday? The benchmark rate in Turkish lira has dropped from 50% to 47.5%.

This article was translated from Dutch and was originally published on Spaarvarkens.be.