Nikkei 225 index best and worst performing stocks of Q1’24

The Nikkei 225 index made headlines in the first quarter as its bullish momentum continued. Like other indices, it surged to a record high of ¥40,885, which was about 22% above its January open. In local currency terms, it outperformed the S&P 500 and Nasdaq 100 indices, which have risen by over 10%.

Nikkei 225 vs S&P 500 vs Nasdaq 100

Japanese stocks surged in the first quarter, helped by strong inflows from global investors. Most of these buyers have been motivated by Warren Buffett, who is a big investor in the biggest trading companies in the country.

Also, they rose after the Tokyo Stock Exchange (TSE) implemented reforms to help companies boost their stock prices. As a result, most companies have started boosting their share buybacks and dividend payments. 

The Nikkei 225 index also surged as the Japanese yen plunged. This week, the currency tumbled to almost 152 against the US dollar, forcing the government to vow interventions. 

The index and yen have diverged even as the Bank of Japan (BoJ) changed its tune on monetary policy. In a meeting this week, the BoJ decided to hike interest rates for the first time in over seventeen years. 

BoJ officials believe that interest rates have more room to go up this year since wage growth and inflation are accelerating. The wage growth expanded by 2% in January after expanding by 0.8% in December. It has grown for 20 straight months.

Most Japanese exporters prefer a weaker yen since it amplifies their overseas profits. This includes companies like Toyota and Honda.

Most Nikkei 225 index companies have been in the green this year. Fujikura share price has jumped by more than 110% as demand for its power and telecommunications solutions rose.

Fuji Electric, a provider of semiconductors, energy, UPS & industrial power supply solutions, has soared by 69%. The other top-performing Nikkei 225 index companies like Dainippon, Ebara, Kawasaki Heavy Industries, Tokyo Electric, Mitsubishi, and Nomura.

Nomura, a leading Japanese bank, has jumped by over 53% this year as investors anticipate more net interest income (NII). Other banks like Mitsubishi UFJ, Mizuho, and Sumitomo Bank have all jumped sharply this year.

Softbank, one of the biggest Japanese conglomerates, has soared by 43%, helped by the strong performance of technology companies. 

On the other hand, the worst-performing companies in the Nikkei 225 index are Fujitsu, Mitsubishi Heavy Industries, Suzuki Motors, Kawasaki Kaisen, and Fujifilm. All these stocks have plunged by over 60% this year. The other laggards are Terumo, Daikin Industries, Sharp, and Yamato.