Japan Enters Recession With Nikkei About To Hit All Time High
https://www.zerohedge.com/markets/japan-enters-recession-nikkei-about-hit-all-time-highIt's not like anyone actually believes it any more, but if anyone needed the most clear and concise proof that there is no, zero, zilch connection between the economy and stock market, look no further than Japan where the Nikkei has more than doubled from the covid lows and is about to breach its all time bubble highs set in in the last days of 1989... and moments ago Japan entered a recession. In fact, From its generational low set a decade ago, the Nikkei has almost quadrupled even as Japan's economy has slumped into recession three times!
So anyway, confirming that only central banks matter in a world where the economy clearly does not, moments ago Tokyo reported that Japan’s economy "unexpectedly" contracted for a second quarter at the end of 2023, slipping into recession and significantly clouding the Bank of Japan’s path toward ending its negative interest rate policy (as it was supposedly preparing to do, even if it really had no intention at all of hiking).
Japan's GDP shrank at an annualized pace of 0.4% in the final three months of last year, following a revised 3.3% contraction in the previous quarter, as both households and businesses cut spending. Economists had expected the economy to expand by 1.1%.
Japan enters a recession, while the Nikkei is in record territory. A harbinger of things to come in America?
