In July, Nikkei 255 Stock Average and TOPIX reached new highs, but fell back roughly to where they started on yen turnaround.
Following a significant adjustment in early August, Japanese stocks have remained in an unstable situation. After falling to levels factoring in a potential economic recession in the US and Japan on August 5th, Japanese stocks have shown signs of rebound but with a cautious outlook due to the volatile dollar-yen exchange rate.
Due to the sharp decline in the stock market, pessimistic opinions may dominate in the foreseeable future. While it may take some time before the market stabilises, we believe that this presents a buying opportunity from a long-term perspective.
Full article: pdf AMOI Market Review and Outlook July 2024
Written by Kazuhiko Hosaka, Senior Product Specialist, Asset Management One Co., Ltd.