Key Focus Areas in Response to the Sharp Decline in Japanese Stocks

Following a significant adjustment in early August, Japanese stocks have remained in an unstable situation.

After falling to levels factoring in a potential economic recession in the US and Japan on August 5th, Japanese stocks have shown signs of rebound but with a cautious outlook due to the volatile dollar-yen exchange rate.

It is expected to take some time for the market to stabilize, with particular attention on communication from the Bank of Japan (BOJ) and volatility in the dollar-yen exchange rate. The direction of the US economy, which was one of the triggers for the recent stock market decline, will also be closely monitored.

Full article: https://www.am-one-int.co.uk/our-firm/news-updates/233-amo-insight-key-focus-areas-in-response-to-the-sharp-decline-in-japanese-stocks

Written by ?Hitoshi Asaoka, Senior Strategist, Asset Management One Co. Ltd