Assessing the Impact of New NISA on Japanese Stocks by Analyzing Corporate Costs with Product Indicators

Indexes” to check for success in individual stocks.

I used cocoa beans as an example, but the importance of catching upstream information is the same for other commodities.

1_What is the “Copper Doctor”?

Copper, nicknamed “Doctor Copper,” is said to be a diagnostic of the economic outlook. Copper is widely used in key sectors closely related to the economy, such as machinery, construction, and transportation, and copper demand trends indicate the future of the economy. The three-month futures price on the London Metal Exchange (LME), an international index of copper prices, has been sensitive to changes in the global economy in the past.’ In the event of global economic shocks, such as the Lehman Shock in 2008 and the spread of the new coronavirus in ’20, copper prices have plunged ahead of economic indicators.

2_”CRB Index” is a leading index of inflation

The “Composite Commodity Index” is an index of the overall price movements of commodities such as energy, metals, and grains. A representative overseas index is the [CRB] Index, also known as an inflation index, which is an international commodity futures index calculated from futures contract prices on European and U.S. commodity exchanges and consists of 19 commodities (crude oil, unleaded gasoline, heating oil, natural gas, gold, silver, copper, aluminum, nickel, corn, soybeans, wheat, cotton, raw beef, lean pork, coffee, cocoa, orange juice, and sugar).

The CRB Index has a high percentage of energy and agricultural products and is easily influenced by WTI (West Texas Intermediate) crude oil.

3_”Nikkei Commodity Index 42″ is a leading index for business sentiment indices

Domestic commodity indices include the [Nikkei Commodity Index]. There are 17 commodity price indices and 42 commodity price indices calculated based on domestic inter-company transaction prices of major commodities such as materials and fuels that are sensitive to economic trends. 17 indices are published on a daily basis and 42 indices are published on a monthly basis (weekend values are also calculated as a preliminary report). The 42 commodity price indexes tend to respond quickly to economic recessions and recoveries, and are used in the leading series of the Cabinet Office’s business sentiment indexes.

The Nikkei Commodity Index includes cotton yarn, H steel, copper bullion, gold bullion, light oil, natural rubber, sugar, soybeans, etc. The 42 commodities reached a new high in November last year and remained at a high level in February.

Domestic commodity indices are positioned midstream. They spill over from the corporate goods price index to the consumer price index. In the process of moving from upstream to downstream, exchange rates and transportation costs have an impact. Factors that contribute to price fluctuations are intricately intertwined. Let’s suppress upstream information that directly affects corporate profits.