Nikkei225 - index jumps to all-time record despite yen appreciation

Macquarie Warrants Singapore
05-07

The $Nikkei 225 Index(N225.JP)$ June futures gained another 1.4% this morning (as of 10AM) to 62,805 - a new all-time record - compared to yesterday's 5PM close

🔥This takes the Nikkei225 futures' increase over the last two days to 5%, further cementing its position as the top performing major index this year to date with a 25.8% gain so far - more than 3 times that of the S&P500

🌈The Nikkei225's exuberance this morning reflects the optimism that the war tensions in the Gulf may be coming to an end

According to an interview with PBS News Hour, Trump said the war has “a very good chance of ending” and there’s a possibility that happens before his trip to Beijing next week

🤝Meanwhile, various news reports have said that China’s top diplomat has asked for the swift reopening of Hormuz in a meeting with his Iranian counterpart yesterday

The combination of geopolitical de-escalation, lower energy costs, technology sector momentum, and a yen that remains relatively export-friendly has created a powerful tailwind for Japanese equities, outweighing concerns about currency appreciation (Bloomberg AskB)

Yesterday, the Japanese yen had spiked to a 10-week high of 155.04 per dollar amid a suspected government intervention

Talk about Japan’s market action has dominated trader discussions in recent days, with many seeing the 160 level as a trigger point for currency officials

Despite the yen appreciation this week, the yen remains relatively weak, trading at levels last seen in 1990

Since listing on 15 April, Macquarie's trending Nikkei call warrant $NKY 62000MBeCW260911(V5PW.SI)$ (https://warrants.com.sg/tools/livematrix/V5PW) is up 51.2% to SGD 0.245 versus the Nikkei225 futures' +7.8% gain over the past 22 days, while trending Nikkei put warrant $NKY 55000MBePW260911(YHSW.SI)$ (https://warrants.com.sg/tools/livematrix/YHSW) is down 45.7% to SGD 0.089 as of 1027AM this morning

Whether bullish or bearish, investors keen to take a leveraged view on the Nikkei225 can consider using either the call or put warrant to do so without the risk of margins calls

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