Global Markets Bounce Back: Is Now the Time to Reinvest in Japanese and US Stocks
News Context
At a glance
- The Tokyo stock market is expected to rebound on the 5th for the first time in three business days, driven by a reconsideration of buying in export-related stocks...
- Individual stocks with strong financial results, such as Sumitomo Electric Industries and Nomura Holdings, are also likely to rise.
- Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, notes that:
Tokyo Stock Market Expected to Rebound After Holiday Period
The Tokyo stock market is expected to rebound on the 5th for the first time in three business days, driven by a reconsideration of buying in export-related stocks such as automobiles, electronics, and machinery, as well as materials stocks, which had fallen significantly at the end of last week.
Individual stocks with strong financial results, such as Sumitomo Electric Industries and Nomura Holdings, are also likely to rise. The Tokyo Stock Exchange will extend trading hours by 30 minutes from today until 3:30 pm, allowing stock prices to react to financial results and foreign trends during trading hours.
| Market Indicators | Values |
|---|---|
| Average Nikkei futures settlement price (denominated yen) on the Chicago Futures Market (CME) | 38,375 yen (255 yen higher than the closing price of regular trading on the Osaka Exchange) |
| US S&P 500 stock index | Rose a combined 0.1% on the 1st and 4th |
| 10-year US Treasury yield on the 4th | Fell 10 basis points to 4.28% |
Expert Insights
Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, notes that:
- Given that Japanese stocks fell sharply last weekend, some buying is likely aimed at a self-sustaining rebound in technology stocks such as semiconductors and export-related stocks.
- US stocks remained firm for two business days during the Japanese holiday period.
- As the results of the US presidential election may take some time to be known, stock prices may be volatile up and down this week amid thin trading.
- The number of European investors may increase slightly due to the extension of TSE trading hours.
- Unless something particularly significant comes out during trading hours, Japanese investors will likely diversify their buying and selling.