Japan's Startup Stocks Face Record Annual Losses Amid Rate Hike Concerns

Reported 1 day ago

Japan's startup stocks are poised for their longest annual losses on record, primarily due to looming interest rate hikes and persistent investor reluctance. The Tokyo Stock Exchange Growth Market 250 Index has declined by approximately 11% this year, marking its fourth consecutive yearly loss. While larger sectors are benefiting from potential increases in borrowing costs, startups struggle with low profitability and a lack of long-term growth strategies, compelling many to rush into public offerings. Economic factors coupled with the yen's depreciation against the dollar have diverted investor focus away from startups, highlighting the challenges they face as the Bank of Japan prepares for potential rate increases.

Source: YAHOO

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