Japan’s Nikkei Gets a Boost as IOC Mulls Postponing Tokyo Olympics
Arslan Butt • 1 min read
Japan’s stock market index Nikkei registered upward movement despite the fragile market sentiment over expectations that the Tokyo Olympics 2020 could be postponed instead of getting cancelled on account of the coronavirus pandemic. The International Olympic Committee (IOC) confirmed that it was exploring “scenario planning” as the number of cases and the death toll continue to climb higher and raise concerns that the virus may not get contained anytime soon.
Japan’s ailing economy is widely expected to slip into recession as a result of last year’s trade tensions and the present market conditions owing to coronavirus. The upcoming Olympics was one of the only possibilities of hope for some revival in economic growth in the near future.
Over the weekend, Canada and Australia announced their withdrawal from the Olympics over the coronavirus crisis, while the IOC revealed that it would look into pushing the event by a year instead of canceling it – a move that would definitely have driven the Japanese economy into recession.
However, the overall sentiment in global equity markets remains strained over the possibility of tighter lockdowns being implemented by countries around the world. The world over, the airline industry remains one of the worst affected as a result of severe travel restrictions and clampdowns.