On the eve of the U.S. presidential election, caution continues in the Japanese stock market. Movements to find stocks to buy in case of a sharp decline.

November 5, 2024 2:39 PM GMT+9 (excerpt).

As the final outcome of the U.S. presidential election remains unclear, market participants are watching the moves of speculators closely. If the market experiences sudden volatility when the results are announced on the 6th in Japan time, it is anticipated that there may be stocks sold off more than their fundamentals, and some are looking for stocks that could rebound after a sharp market decline, drawing hints from the August sharp drop and subsequent autonomous rebound.
This week also sees the Federal Open Market Committee (FOMC) meeting, marking a major event for the stock market by the end of the year. Since the lower house election in Japan, dealing with turbulent factors like major U.S. tech earnings, there are signs of readiness for another round of turbulence.
After the presidential election results are known, there is a risk of sudden market volatility, but excessive reactions are not expected to prolong. "There may be overheating in popular stocks at the moment, but if stock prices adjust along with the overall market, it could be a good buying opportunity," said Atsushi Kitazawa, Deputy Chief of Investment Information Group at Mitsuki Securities.