Financial markets refer to platforms or systems that facilitate the buying and selling of financial instruments, such as stocks, bonds, currencies, and derivatives. These markets are essential for the smooth functioning of economies as they provide a mechanism for raising capital, price discovery, and risk management. Financial markets can be classified into various types, including primary markets, where new securities are issued, and secondary markets, where existing securities are traded. They operate in a regulated environment to ensure transparency and fairness, and can be influenced by factors such as economic data, interest rates, and geopolitical events. The main participants in financial markets include individual investors, institutions, governments, and corporations. Overall, financial markets play a crucial role in facilitating investment, saving, and risk allocation, thereby contributing to economic growth and stability.
The Nikkei index initially surged due to a tech stock rally, reaching 37,326 points, driven by semiconductor giants like Advantest. The BoJ Governor's comments on wage growth raised the prospect…