Japanese stocks are focused on the fate of the next 'trigger' of 8 trillion yen, disappointed by the failure of Nvidia.

November 22, 2024, 4:53 PM GMT+9 (excerpt)

The earnings report of the leading U.S. semiconductor nvidia, which was expected to be the catalyst for the year-end rally, did not prove to be a stimulant for the currently subdued mood of Japanese stocks. There is currently no clear indication capable of overshadowing the caution towards the upcoming Trump administration, and the lackluster results of domestic companies' interim reports.
In this context, there are voices expecting a turnaround in supply and demand to become the 'trigger' for year-end highs. It is reinvestment by investors who received over 8 trillion yen in interim dividends. However, due to the unclear investment environment, many suggest that it may be difficult to predict how active it will become, and for the time being, there are expectations of price movements within a range.
"We had assumed a year-end stock high, but now it's becoming uncertain," said Hiroshi Toda, a fund manager at Resona Asset Management. Corporate interim results were not as strong as expected, and the incorporation based on expectations for the upcoming Trump administration has already completed one cycle in a short period. "The scenario of nvidia's earnings being a highlight was likely the last reference point for the bulls."