How would pre-emptive strike on North Korea affect the Nikkei Market? Was it factored in already for today?

Question

Today: (15,473.82 -78.99 ). Has the drop factored in the above news already? Or is the nikkei going to plunge further due to the possibility of a possible "war".

Answer 1

Look to the currencies for you answer.

The USD was very weak coming into that development. Plus, the disappointing U.S. Non-Farm payroll report should have caused the Dollar to weaken further. But that missle "test" caused a stampede into the Dollar, and all the other major currencies weakened.

So far, it's just a blip, waiting on developments. As the situation worsens, so will the Yen, and thus the Nikkei. But it may die down to a sideshow if other news were to take the stage.

Japan has a slew of economic reports coming out tonight at 7:50 EST. I intend on going with the flow of whatever happens tonight.

And that's how it works, rather than trying to make "predictions." Each day, we re-evaluate as new information comes in, re-tool, re-think, and re-adjust our positions. You would do well to forget trying to predict anything, and just go with the price action, keeping an eye on the longer-term trend.