The Tokyo stock market has continued to rise significantly, and TOPIX has risen during the day for the first time in seven months. The Institute for Supply Management (ISM) manufacturing index fell more than expected, and fears of excessive tightening of the US economy receded. Export-related items such as electrical machinery and precision equipment, as well as raw materials such as steel and textiles, were bought. Domestic demand-related industries such as real estate are also high, and all 33 industries are up.
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Perspectives of market participants
Ikuo Mitsui Fund Manager, Aizawa Securities Investment Advisory Department
- In the short term, the stock price was at an overshoot level, so it was a good timing for new purchases at the beginning of the month and fund purchases in the October-December quarter.
- I think there are still concerns regarding a downward revision in corporate earnings in the US, but today the wholesale sector has rebounded significantly as Itochu announced an upward revision.
- However, overall, I think it is still too early to conclude that the downtrend in the US market has ended in earnest.Japanese stocks remain vulnerable to turmoil in the US and European markets
Hideyuki Ishiguro Senior Strategist at Nomura Asset Management
- Judging by the movement of risk assets, the U.S. economy will stall further, and weaker demand will lead to a slower pace of U.S. interest rate hikes.Domestic and foreign stock markets will solidify once economic indicators and corporate earnings are confirmed
- In the United States, stock prices have fallen due to interest rate hikes, which has had a negative wealth effect on household budgets.
- Corporate earnings in the US are likely to surpass the levels that have already been revised downward by analysts, and Japanese earnings are expected to be solid, supported by the weaker yen.Stock prices in both Japan and the United States are in a low price range, so there is a possibility that there will be a reassessment and buying from a performance perspective.
TSE 33 industries
| top rate of increase | Wholesale, mining, petroleum and coal products, precision instruments, steel, machinery |
| High drop rate | － |
background
- U.S. ISM Manufacturing Index out of 2 yearsminimum level－ Orders shrink once more
- New York crude oil futures on the 3rd rose 5.2% to 83.63 dollars per barrel, the sharpest high since July-Possibility of production cut by OPEC plus
- U.S. stocks fell to their lowest since July on Mondaysubstantially high– US 10-Year Treasury Yield Falls 19 Basis Points to 3.64%
- North Koreanballistic missilepasses over the air, civil protection information – Hokkaido and Aomori
