New Nikkei225 warrants to trade this year-to-date's top performing major index
The $Nikkei 225 Index(N225.JP)$ is the top performing major global index year-to-date (YTD) in 2026, with a total return of 12.4% to close at 57,877.39 as of 14 April
This compares to the FTSE100's 7.8% YTD return, and the S&P500's +0.7% increase
The index had traded to an all time high of 58,850 on 27 February before falling to 51,063 with the outbreak of the Iran war
The index has since recovered all losses attributed to the war
According to data on Bloomberg, the Nikkei225 traditionally sees net inflows in the month of April from foreign investors who are flushed with cash from dividend payouts
The Nikkei's strong performance has been driven by AI-related and semiconductor stocks, along with support from a weaker yen that has enhanced export competitiveness for Japanese companies (Bloomberg)
While the yen traditionally has a strong correlation with the performance of the Nikkei225, Bloomberg Intelligence (BI) believes that the yen's weakness is no longer consistently lifting Japanese equities, as higher oil prices and potential Bank of Japan tightening are muting the usual currency tailwind.
According to BI, the FX correlation for the broader MSCI Japan index has fallen to 0.10, indicating reduced sensitivity to currency movements, with energy being the primary beneficiary of yen weakness
Some analysts quoted on Bloomberg believe that the Nikkei225 is likely to face the largest downward revisions in earnings due to rising oil prices
Should oil prices rise by 30%, 50%, or 100% month-over-month, the Nikkei 225 could experience earnings downgrades of 5.4%, 8.9%, or 17.8%, respectively
🆕Macquarie's newly listed Nikkei225 call and put warrants expiring in September offer investors a leveraged opportunity to trade the moves of the Nikkei225 at a low capital outlay with no risk of margin calls
✳Trending Nikkei225 call $NKY 62000MBeCW260911(V5PW.SI)$ (https://warrants.com.sg/tools/livematrix/V5PW) for example, costs SGD 0.167 with the Nikkei225 June futures trading at 58,560 and moves approximately 6.4 times more than the Nikkei225
✴Trending Nikkei225 put $NKY 50000MBePW260911(LQCW.SI)$
(https://warrants.com.sg/tools/livematrix/LQCW) costs SGD 0.106 and moves approximately 5.3 times more
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