Stocks and Investing
Stocks and Investing
Japan's 2024 Stock Rally Brought Meager Returns in Dollar Terms
- The benchmark Topix index reached a record high in 2024 and rose around 15%. But the dollar-denominated gains are a meager 3% as the yen tumbled around 10% against the greenback. That's far below those posted by its global peers, including the S&P 500 and the Hang Seng China Enterprises Index in US currency terms, which both rose over 25%.
The article from BNN Bloomberg discusses how Japan's stock market experienced a significant rally in 2024, with the Nikkei 225 index rising by 28%. However, this impressive performance in local currency terms translated into much more modest gains for foreign investors due to the yen's depreciation against the dollar. The yen weakened by about 10% against the dollar over the year, which eroded the returns for investors holding dollars. This phenomenon highlights the impact of currency fluctuations on investment returns, where even substantial local market gains can be offset by adverse currency movements. The article also touches on the broader implications for global investment strategies, noting that while Japan's market was a bright spot, the currency dynamics significantly influenced the actual returns for international investors.
Read the Full bnnbloomberg Article at:
[ https://www.bnnbloomberg.ca/business/international/2024/12/24/japans-2024-stock-rally-brought-meager-returns-in-dollar-terms/ ]
Read the Full bnnbloomberg Article at:
[ https://www.bnnbloomberg.ca/business/international/2024/12/24/japans-2024-stock-rally-brought-meager-returns-in-dollar-terms/ ]
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