[Japan Stock Weekly Outlook] Remains high, falling US interest rates and performance expectations - supply and demand are cause for concern

2024/7/5 15:15 JST (some excerpts)
Japanese stocks for the 2nd week of July (8-12) are expected to maintain a high price range. Stock appreciation against the backdrop of expectations of interest rate cuts in the US market has become a tailwind, and it seems that purchases expecting corporate performance will also enter. On the other hand, in terms of stock supply and demand, there are settlement of exchange-traded funds (ETFs), so it is easy for the upper price to become heavy due to related sales.
　　The Tokyo Stock Price Index (TOPIX) continued to rise 2.7% weekly, with high US stocks as a tailwind in the 1st week of July. TOPIX and the Nikkei Stock Average hit highs in the second half of the week. Interest rates declined in response to economic indicators in the United States, and growth (growth) stocks rose. In Japan, reviews and purchases have begun to enter semiconductor-related products, etc., and it seems that the 2nd week of July will also be steady.