In the first half of June, the market remained stagnant amidst selling pressure from overseas investors and cautiousness surrounding monetary policy meetings in the US, Japan, and Europe. In the latter half, there were phases of weakness due to concerns over political instability in Europe, particularly in France. However, supported by the rise of US stocks and speculation of policy adjustments by the Bank of Japan, domestic long-term interest rates increased, leading to a rise in financial stocks.
We will maintain a positive outlook on the stock market in the mid- and long-term, as structural positive factors for the market remain intact, such as (1) a shift to an inflationary economy, (2) corporate governance improvements in Japanese companies, and (3) green shooting of equity culture in Japan. While there is upside potential for the whole market in the short-term, we will take a positive stance from the mid- and long-term perspectives.
Full article: pdf AMOI Market Review June 2024
Written by Kazuhiko Hosaka, Senior Product Specialist, Asset Management One Co., Ltd.