Nikkei index closes with falls after Prime Minister Abe announces his resignation

August 28, 2020 16:00

Nikkei index closes with falls after Prime Minister Abe announces his resignation

Japan's main stock index, the Nikkei 225, has today distinguished itself from the widespread rises in Asian indices, and closed with a fall of 1.41%, down to 22,882.65 points, in reaction to the health-related resignation of Japanese prime minister Shinzo Abe.

The index opened the session with increases, like the rest of the Asian markets, driven by comments from US Federal Reserve president Jerome Powell, promising to allow higher inflation than expected in order to stimulate job creation in the United States. Abe's announcement, however, caused the index to turn sharply around, and reach lows of more than 2% at times.

H4 Nikkei chart

Source: Admiral Markets MetaTrader 5. H4 Nikkei chart. Data range: from July 28, 2020, to August 28, 2020. Prepared on August 28, 2020, at 2.30 p.m. Keep in mind that past returns do not guarantee future returns.

Among the companies that recorded the greatest losses are Sony, which fell 3.26%, and Softbank, with a decline of 3.34%.

Abe has once resigned as prime minister in 2007 due to health problems related to chronic intestinal disease. He was re-elected to the position in 2012, and has served as Prime Minister without interruption until now.

Admiral Markets offers the possibility to trade the Nikkei through Contracts for Difference (CFD), which allows you to open short operations and thus take advantage of bear markets such as this one.

The Nikkei fell by 3.27% so far in 2020, after closing 2019 with a growth of 18.20%. Over the last five years, it has only closed one year in the negative: 2018, with a fall of 12.08%. However, in 2016 it only grew by 0.42%.

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