A gauge in Japan start -up actions is heading to its longest series of annual losses, the threat of higher interest rate adds to a list of problems that distance certain investors from the sector.
The Tokyo 250 stock market growth market, formerly known as mothers index, is down approximately 11% so far this year and planned for its fourth annual loss, the Longer collapse for compiled data dating back to 2000. On the other hand, the larger Topix won 15% as banks and life insurers have increased to anticipation that their income will benefit from higher borrowing costs.
The downward trend for startups could continue while the Bank of Japan seeks to increase interest rates, which makes more expensive for new companies to finance research and development. The recent collapse of Yen has a five -month hollow against the dollar has also drawn attention to Japan exporters and far from startups, which are mainly made up of companies that depend on internal income.