This week's earnings and economic calendar (7/22-7/25) will see a full-fledged announcement of American earnings! Will the semiconductor stock decline be limited to a local adjustment?

Also, the movement of exchange rates is being closely watched. A rise in the yen exchange rate is expected this week. The unwinding of unwind positions in the yen due to the deteriorating risk environment is likely to continue."On the other hand, expectations of a rate hike at the Bank of Japan's monetary policy meeting at the end of the month have diminished, posing a potential drag on the yen. If excess short positions on the yen have been somewhat corrected in the past two weeks, the dollar-yen exchange rate is likely to respond more directly to the outlook for monetary policies in the US and Japan, as well as market sentiment."While intervention concerns linger, if US indicators exceed expectations, the dollar is likely to be bought easily. Depending on economic indicators and market sentiment outlook, the dollar-yen exchange rate is expected to show a direct response. Despite looming intervention concerns, the dollar is likely to be bought easily if US indicators surpass expectations."

For economic indicators, in the US on the 25th, data for April-JunePreliminary estimate of Gross Domestic Product (GDP)On the 26th, the Personal Consumption Expenditures (PCE) Price Index, a key focus of the US Federal Reserve, will be announced.Excluding the volatile food and energy components, the PCE Core Price Index is expected to increase by 0.2% compared to the previous month, expanding from the 0.1% increase in May. If inflation slows significantly, the dollar is likely to face selling pressure due to a decrease in long-term US interest rates.1. The Nikkei Average sees a significant decline for the first time in four weeks, hit by a strong yen and a double blow of weakness in US tech stocks! Are the losers of the Trump Trade scenario? 2. Taiwan's TSMC announces earnings that exceed expectations in both performance and outlook, experiencing a sharp drop due to political risks. 3. Semiconductor stocks experience a rapid decline globally! Is this a buying opportunity on the dip?

Last week's market points
4. Weekly earnings report: BofA revenue forecast beats expectations with a strong growth of 6% year-on-year. Keep an eye out for potential opportunities in the Japanese market.
2. Consensus estimates expect significant growth from Netflix, propelled by the successful global expansion of its streaming platform. Investors are advised to closely monitor earnings reports for any surprises.
3. Market sentiment remains positive towards growth tech companies, especially in the semiconductor sector. Focus on strong performing stocks while considering investment strategies amid market uncertainties.
4. 'God of Investment' Mr. Buffett is 'profitable' again! Funds flowing into value stocks.
5. US stocks 'Mag 7' plummet, 'rate cut trades' and 'Trump trades' intensify!
6. The rapid rise of US small cap stocks is nothing more than short cover, according to BofA.

Last week in the Tokyo stock market, the Nikkei average fell significantly by 1126.89 yen (2.74%) to 0.04 million 63.79 yen from the previous week, marking a sharp decline for the fourth consecutive week. This was attributed to the Bank of Japan's intervention in buying yen.Strong yenWith the Biden administration's strengthening of semiconductor export restrictions, 'God of Investment' Mr. Buffett is 'profitable' again! Funds flowing into value stocks.Volatility in high-tech stocks such as semiconductors and others.isDow IncThe Nikkei average, which was comfortably updating its record high, was hit hard and quickly reversed. In the midst of this, funds are flowing from large cap to australian small/mid capand the Tokyo Stock Exchange Growth Market 250 Index, predominantly composed of emerging growth companies, remained relatively strong. However, mirroring the investment popularity in the US stock market, the rise of Japan's australian small/mid cap stocks, which are currently showing strong movement, may be short-lived.There is a risk of interest rate hikes for financially weak australian small/mid cap stocks due to differing financial policy situations, as the US is expected to cut interest rates by the end of the year, while the Bank of Japan is exploring the timing of additional rate hikes.

The important index Russell 2000, for American small cap stocks, is also performing well. Interest rate cuts enhance expectations of economic recovery, Trump's tax cuts and 'America First' policy benefit domestic companies, especially.According to Mr. Kabura of Societe Generale, "Trump 2.0's potential policies will have a positive impact on a wide range of transactions, so the US elections are likely to induce frequent rotational trading."However, some analysis indicates that this isIt's just a short-term rise.Warning of the possibility. BofA shares a similar view.Short coverAn important factor leading the rise of the Russell 2000and particularly pointed out that stocks that were heavily shorted previously performed the best. Savita Subramanian, the head of BofA's US equity and quant strategy, mentioned that a third of the Russell 2000 constituentsare still holding losses.pointed out.