Tokyo Market Summary: Nikkei Average continues to fall for 8 days, feeling wary of “August yen appreciation,” and the Fed is watching closely

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Concerns about future safety that remain even after the Nikkei average falls by 4000 yen, individual predicament due to depreciation in high-tech stocks
The Nikkei Average fell by about 4000 yen in just 2 weeks from the all-time high (0.04 million2224 yen) set on the 11th to the 25th. It seems that unstable market developments will continue in the future due to the yen exchange rate in the foreign exchange market. Sales of semiconductor stocks, which dominated the world until around spring, continued today. Risk-off movements have intensified, and if individual investors who have strengthened their contrarian orientation cannot support the market price, there remains a sense of caution that adjustments will further deepen. $Tokyo Electron (8035.JP)$It continued to drop for 3 days. It hit a low of 0.02 million7570 yen, which temporarily fell 4.96% for the first time in 5 months. $Lasertec (6920.JP)$It also fell by about 3%, and the year-to-date low was updated every day.

The currency options market is wary of the “appreciation of the yen in August,” and the Fed is watching closely
There is a movement to brace for the “appreciation of the yen in August,” which is regarded as a rule of thumb in the foreign exchange market. In the currency options market where the right to buy and sell currency is traded, there is an increase in transactions that are wary of the appreciation of the yen and depreciation of the dollar one month from now. The Japan-US monetary policy meeting will be held at the end of July, but there is a possibility that the seeds of turbulence await the yen exchange rate in August. “August is prone to strong yen and depreciation of the dollar.” These myths have been whispered in the foreign exchange market for many years.
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Bank of Japan Governor Ueda's unusually long silence was a factor in the interlacing speculations of interest rate hikes before the decision meeting
The period when there is no information transmission from Governor Ueda Kazuo before the Bank of Japan's monetary policy meeting is likely to be the longest so far. As a result, the difficulty of predicting monetary policies has increased, and there is a possibility that it is a factor that increases financial market volatility. Governor Ueda did not speak publicly about monetary policy at the end of his remarks at the Diet on June 18. This length of silence is unusual for Mr. Ueda, who is one of the governors who frequently disseminates information among the world's major central banks, who sometimes makes statements many times a day.

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Distribution source: Bloomberg, Nihon Keizai Shimbun