The stock market has been seeing a lot of uncertainty after the news of Donald Trump’s bout with COVID-19 broke last Friday. However, with recent developments pointing towards an improvement in the president’s health, the Japanese share market is bouncing back from the recent losses. The share market is recovering after a press conference by the doctors taking care of the President Donald Trump. The doctors have confirmed that he is doing well. As a result, the average Nikkei share jumped up to 1.23%, a massive lead.
The recent developments in the health of the US president
Doctors have signaled that the president could be regaining his stature at the White House as soon as next Monday. They are monitoring the oxygen levels, which has dramatically improved after he was given supplemental oxygen. This news has itself caused a lot of stability in the stock market and foreign markets. The same reflects in the Topix Index, which has risen to 1.74%.
What companies are making a comeback with Trump’s recovery?
Railway companies
On Friday, when the news of the president’s sickness broke, there was a sharp plunge in the shares of railway companies. In part, this was due to the factor that the Trump campaign is encouraging domestic tourism, while coronavirus is pushing many countries and cities to keep their borders closed.
East Japan and West Japan railway have advanced 3.7% and 5.8%, respectively. At the same time, the central Japan railway has gained 6.2%. Overall, the market is reacting very positively to the return of the US president to the office. How his policies shape domestic tourism remains to be seen. Meanwhile, these companies are enjoying the Positive attention of the market.
Insurance companies
Insurers like Daiichi life Holdings and Sompo Holdings have reported a rise of 4.7% and 3.7%, respectively.
Steel
Nippon steel has had a record-breaking 6% come back in this sector, which is considered one of the best performing comebacks. Compared to competitors, this is much higher. This could be due to the infrastructure deals that Trump has discussed, bringing into action if the wins the election. Whatever the reason be, the steel industry is booming and is expected to outperform the market in the upcoming days.
Stay-at-home winners
Nitori has reported a gain of 0.9%, which is not as overwhelming as some others in the industry. Compared to the other industries which have made a strong comeback, at-home winners are still lagging behind to make an impressive return after the fall on Friday, which came after the announcement of Donald trump’s incapacity.
However, it is still positive towards the company’s growth. It shows that the companies are able to recover from the uncertainty of the market, given the right leadership.
The furniture store chain has seen a massive fall in their earnings after coronavirus hit the market demand. For the first half of Japan’s financial year, these companies were getting steady gains and performing strongly. However, the second half has not been so kind to these companies as reported by various stay-at-home winners.
While signs are pointing towards a positive Trump comeback, the chances are that these companies will also recover well. Since Trump plans on reopening the economy, they could see much higher demands of their products now than they have seen in the second quarter of business.
Honda motor
Honda motor rose 2.6% after they announced on Friday that they would stop their continued participation in the FIA Formula One world championship to improve their zero-emission technology instead. What it means for the future of Formula One and modern racing technology remains to be seen. However, the Honda motor’s positive outcome is giving hope to many in the industry of improvement and good times to come.
IT and electronics
NEC has reported a price of 2.5% after dominating the market odds. The company has also reported that they are looking forward to acquiring the Swiss financial software company Avaloq Group AG. The entire deal is being valued at 2.2 billion dollars.
Although the future looks positive for now, it will be interesting to see how things unfold.
