Is it a “perfect place to buy” or “the beginning of a falling market”? The biggest increase ever since the Nikkei Average crashed!

The Japanese stock market on the 6th, which received a historic decline on the 5th, had a sharp rebound of 10.23% in the Nikkei Average and 9.30% in TOPIX.The Nikkei Average completely reversed from the biggest drop ever (4451.28 yen) the day before, and the biggest increase ever (3217.04 yen)It became. In addition to the reaction of the decline on the 5th, the fact that the exchange rate reversed depreciation of the yen and that concerns about economic deceleration eased due to the fact that the US ISM non-manufacturing business index for July became 51.4, which exceeded market expectations, also supported.

Investors also see it as a “bargain sale”
Regarding volatile movements in Japanese stocks, traders at domestic management companies”Long-term investors from overseas saw it as a bargain sale and moved to buyThere is a possibility” (Nihon Keizai Shimbun dated 6th). Also, on the 6th, Bloomberg said Resona Asset Management's Shimoide Chief Strategist “I think the exchange rate has settled down and there is a buyback in Japanese stocks.If there is no change in performance, it is clear that Japanese stocks are undervaluedThe comment “Yes” was introduced, and it seems that there are not a few investors who regard it as a “perfect place to buy.”

Unsteady movement for a while?
Meanwhile, the aforementioned chief strategist Shimode said, “Since we are entering a period where materials such as economic indicators are scarce,The market seems to move due to speculationIt also says, “Yes.” Ichikawa Masahiro, chief market strategist of Sumitomo Mitsui DS Asset Management, also wrote in the Sankei Shimbun dated 6th”The market will be unstable for a whileIt shows the point of view.”
Matt Simpson, a senior market strategist at City Index, described the movement of Japanese stocks as “a healthy adjustment after an unhealthy crash,”It's not an increase in risk onIt has been analyzed as” (Bloomberg, 6th), and it suggests the possibility that investors will continue to be cautious in the future.

Black Monday 37 years ago came to an end in 2 weeks
Incidentally, the daily decline rate of the Nikkei Average was 14.9%, and during Black Monday in 1987/10, which was more severe than the big crash on the 5th, it took about 2 weeks from 10/20, when the big crash occurred, to the bottom. It wasn't until the following year, 88/4 that stock prices returned to the same level as the high price set on 10/14 of the same year just before Black Monday, and it took about 6 months.