Japan startups face longest decline ever as rate hike approaches.
Japan’s startup stocks face record annual losses due to rising interest rates and a weak yen, while broader markets gain.
Man, Japan’s startup scene is having a rough time. The Tokyo Stock Exchange Growth Market 250 Index, which used to be the Mothers Index, is down around 11% this year. That's right, it’s on its way to experiencing its fourth straight annual loss, the worst run since they've been keeping records in 2000!
Meanwhile, the broader Topix is over here flexing with a 15% gain thanks to banks and insurers anticipating fatter earnings from rising borrowing costs. But with the Bank of Japan looking to hike those rates, new companies are going to feel the pinch when it comes to financing their ideas. Plus, the yen's drop to a five-month low against the dollar means everyone's looking at exporters instead of startups. Talk about a tough crowd!
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