Japan 07 (Oct 23 - Dec 26)

[winston]

<Asia>Nikkei Evaporates 2,216 pts/ 5.8% for 2nd Largest Crash in History; Nomura Sees Hedge Funds Shorting JP Mkt Strongly

Major stock markets in the Asia-Pacific region were under pressure comprehensively this morning (2 Aug).

UBS expected the Bank of Japan (BOJ) to raise interest rates by another 25 bps to 0.5% in October 2024, while Goldman Sachs forecasted the BOJ to raise interest rates by another 25 bps to 0.5% in January 2025. USD/JPY inclined 0.2% to 149.04 in the Asian session, while 100JPY/HKD printed at 5.238.

The Nikkei index plunged through 38,000, 37,000 and 36,000 in a row today, dragged down by the sharp decline of the US chip industry.

Nikkei opened lower this morning by 682 points, and the crack continued to widen. It closed crashing 2,216 points or 5.8% to 35,909, near the day low, and is the lowest closing low in more than half a year.

The index collapsed for the second consecutive day, with a cumulative drop of 3,192 points, or 8.2%.

Today's crash is the second largest in Nikkei's history, second only to the "Black Monday" in October 1987, when it evaporated 3,836 points in a single day. For the week as a whole, the Nikkei crumpled 1,757 points, or 4.7%.

Semiconductor-related stocks were dealt a heavy blow. Advantest and Renesas Electronics plunged 8-8.5%, while Socionext, Sumco, SCREEN and Tokyo Electron cratered 12-13.5%.

Major financial stocks were devastated, with Resona Holdings, Sumitomo Mitsui, Mizuho, Mitsubishi UFJ and Nomura crashing 10.8% to 12.1%. Daiwa Securities plummeted 18.9%.

Heavyweights and popular stocks were also sold off. Sony, TEPCO and Rakuten retreated 5.8% to 7.7%, as Softbank and TDK crumpled 8% to 8.4%. NTT and Fast Retailing dropped just 1.9% each. Major car stocks Toyota, Honda, Nissan and Mitsubishi Motors submerged 3.4% to 6.9%.

Yoshitaka Suda, quantitative analyst at Nomura, said speculative funds have stepped up their short-selling of Japanese stocks this morning, especially in the futures market, while they are also buying US stocks.

He found the magnitude of the macro hedge-funds' selloff shocking. Furthermore, the speculation is also driven by the divergence in monetary policy direction between the BOJ and central banks of the US and Europe, while the appreciation of JPY also exacerbated the downtrend in the stock market.

Nicholas Smith, Japan equity strategist at CLSA, commented that global markets are in a panic as investors worry too much about where interest rates are going, with stocks, which have risen the most so far this year, the hardest hit.

However, Japanese corporate guidance and market forecasts have been revised upwards and earnings have been modestly better than expected.

He said BOJ's confidence in the economy led it to raise interest rates at the end of last month and to signal further rate hikes.

Source: AAstocks.com

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Brutal sell-off skims froth from Japan’s US$6 tril stock market

By Hideyuki Sano & Aya Wagatsuma

Japanese equities shed US$1.1 trillion (RM4.86 trillion) in value as they kicked off August with a record three-day loss.

The stocks that were hit the hardest are the ones that had soared the highest, bringing prices down to more attractive levels.

Some of the froth has been removed from the now US$6.1 trillion market.

It will probably take just two or three months for the market to fully recover.

“When you need to cut risks, the most bloated positions will get slashed.”

The Topix is now trading at 13 times estimated forward earnings, compared with 20 times for the S&P 500 Index. The Japan chip gauge is down to 21 times from 35 times earlier this year.

The derivatives market shows sentiment remains positive on Japan, with open interest in bullish Nikkei calls rising faster than bearish puts.

As a result, the put/call ratio has fallen back to its near lowest level in about six-and-a-half years, suggesting bets on a rebound in the market are becoming popular.

Source: Bloomberg

https://theedgemalaysia.com/node/722391

[behappyalways]

7.1 Strong Earthquake Hits Miyazaki,
Momentary Video of Department Store Exposed.
People Flee in Panic

7.1強震襲宮崎 百貨公司瞬間影像曝.民眾恐慌奔逃｜TVBS新聞

https://m.youtube.com/watch?v=fsoVmT8lOfU

[behappyalways]

Japanese stocks are trading at a reasonably low PE of 13.17 after the recent drawdown
https://x.com/Mayhem4Markets/status/1822607782098473284

[behappyalways]

Japan's PM Kishida Announces Resignation Amid Scandals, Opening Door To Political Chaos
https://www.zerohedge.com/markets/japan ... ical-chaos

[behappyalways]

Enterprises are in short supply of people!
Japan recruits international students and foreigners to find employment there

企業超缺人! 日本延攬留學生外籍人士在地就業｜FOCUS午間新聞 20240816‪@tvbsfocus‬

https://m.youtube.com/watch?v=ZpdgVotc2yI

[behappyalways]

'24.08.15【觀點│正經龍鳳配】Pt.2「文雄仔」為什麼決定自宮？
https://m.youtube.com/watch?v=JLQgTrHXAj0

[winston]

Buying These Stocks Now Offers 22% Potential Upside Over The Next Year

by Brett Eversole

One-day crashes don’t last long for Japanese stocks. And if you’re bold enough to step up and buy in these moments, the reward could be well worth it.

Source: DailyWealth.com

https://dailytradealert.com/2024/08/21/ ... next-year/

[behappyalways]

Japan's Liberal Democratic Party's September presidential election "possible list" reaches 11 people

日本自民黨9月總裁大選 「可能名單」衝上11人｜錢麗如｜FOCUS全球新聞 20240820 ‪@tvbsfocus‬

https://m.youtube.com/watch?v=I-J0Vnx7gpY

[winston]

Japan’s elderly now constitute 29.3% of population, a new high

The number of people in Japan aged 65 or older hit a record high of 36.25 million this year,

Italy, Portugal, Greece, Finland, Germany and Croatia represented Europe in the top 10, with rates of over 20%.

South Korea stood at 19.3% and China 14.7%.

The country’s overall population shrank by 595,000 to 124 million.

Sunday’s data showed that 9.14 million elderly people were employed in 2023, also a record.

They represent 13.5% of the total workforce – or one employee in seven.

Source: The Star

https://www.thestar.com.my/aseanplus/as ... a-new-high