Speculative Trading In Japanese Stocks Broke A Record After The Earthquake

Photo: Richard Drew / AP Photo

After Japan’s earthquake, people invested a record-breaking amount in the Japanese stock market.Because of people speculating that the crisis was over-hyped, the amount invested in Japanese stocks peaked, reaching ¥891 billion ($11 billion) in one week following the earthquake, according to Bloomberg.

That’s the largest amount invested in Japanese stocks since they started counting in 2005.

And the same week, the yen broke record highs.

Taisuke Tanaka, a chief currency strategist at Nomura, explained to Bloomberg:

“[That investing in Japanese stocks broke a record] confirms the view that speculative trading played the major role for the yen to break a record last week.”

Traders speculated that the Japanese government would buy yen to pour money into rebuilding efforts (causing the yen surge) and traders speculated that people were over-reacting to the crisis, so they invested in Japanese stocks.

Nothing like making money off a natural disaster.

Don’t miss: Our complete guide to the economic fallout from Japan’s disaster >

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