[Japan Stock Weekly Outlook] Will Japanese stocks rise, take a break from drastic depreciation and proceed with individual screening

2024/8/2 15:10 JST (some excerpts)
Japanese stocks are expected to rise for the 1st week of August (5-9). The market price has settled down since the drastic depreciation of the previous week, and it seems that the selection of individual stocks will proceed sideways based on US economic indicators and corporate financial results.
　　In the 5th week of July, the Bank of Japan decided to raise interest rates to 0.25%, and Japanese stocks depreciated drastically due to disgust with the appreciation of the yen. The TSE stock price index (TOPIX) fell 6% on a weekly basis, and the rate of decline since 2020. Until now, it has been almost completely weak, mainly in export sectors such as transportation equipment and machinery, which have risen due to expectations of boosting performance due to depreciation of the yen, and financial stocks where expectations of rising interest rates have increased.
　　In the United States, the Supply Management Association (ISM) Non-Manufacturing Comprehensive Business Condition Index for July will be announced on the 5th. The market forecast is expected to recover from 51.3 and 48.8 in June to 50, which is the standard value for a good recession. While there are concerns about the future of the US economy, if solid details are confirmed, it will be a tailwind for the stock market.