[Japan Market Conditions] Stocks have not stopped falling sharply, quality evaded due to concerns about the US economy - interest rates fall, yen rises

2024/8/5 13:33 JST (some excerpts)
Stock prices plummeted day by day in the Japanese market on the 5th. The aftermath of Japan's interest rate hike has been added to concerns about the future of the US economy, and “flight to quality (flight to quality)” is accelerating by avoiding risk assets. Interest rates have dropped sharply, and yen is rising.

The US employment statistics announced the previous weekend suggested that the working environment was deteriorating at a pace that exceeded expectations. Semiconductor-related stocks that are sensitive to the economy have declined, and bank and trading company stocks have also been sold, making them completely depreciated. The Nikkei Stock Average and the Tokyo Stock Price Index (TOPIX) temporarily fell more than 20% from recent highs, breaking the “bearish market entry” level. Yen was bought due to risk aversion movements due to stock depreciation, and bond prices have also risen rapidly (interest rates have declined).