[Japan Stock Weekly Outlook] Price consolidation, buying after Japan-US monetary policy announcement - be wary of yen appreciation

2024/7/26 15:16 JST (some excerpts)
Japanese stocks for the week of July 5 (7/29-8/2) are likely to solidify their lower price. There is a strong wait-and-see mood due to Japan-US monetary policy and caution against foreign exchange rates where yen appreciation is progressing, and it is difficult to determine the direction of the market until the middle of the week. However, after the monetary policy was announced, a review purchase can be expected because the stock price index for the previous week has plummeted.
　　On both the 30th and 31st, the US Federal Open Market Committee (FOMC) will be held in the US, and domestically, the Bank of Japan will hold monetary policy meetings. Along with deciding on a reduction plan for government bond purchases, the Bank of Japan is focusing on whether to raise additional interest rates. According to the economist survey, 70% anticipate maintaining the status quo, and 30% anticipate interest rate hikes. Since market views are divided, there are concerns that stock price movements will become rough depending on the exchange rate after the policy is announced.