Today’s Japanese Stock Market Strategy
Strategies
- Buy high-tech stocks
- Sell post-COVID stocks
- Sell bank stocks
Explanation
Despite factors that could have led to a decline, the stock market rose, with the significant drop in bond yields being the most crucial factor.
Following the US market’s uptrend, the Nikkei is likely to open around 32,300 yen. If this happens and the index remains above the 5-day moving average, it demonstrates strong buying momentum. As long as it doesn’t dip below this line, refraining from selling physical stocks is advisable.
Defense and crude oil-related stocks might open high, so it’s prudent to observe initially. If they continue to rise significantly, buying could be considered.
Due to the drop in interest rates, bank stocks are expected to move slowly. If there’s an opportunity to sell based on the index’s behavior, selling might be advisable. Similarly, consider selling post-COVID related stocks if an opportunity presents itself.
High-tech stocks are likely to be promising. Supported by the drop in interest rates and the rise in the index, they are expected to show strong performance.
Review of Today’s Japanese Stock Market
Prominent Movers
- Kawasaki Kisen Kaisha
- Nikkei 225 Index
- Bank stocks
The standout performer from the opening was the Shipping Companies. While the increase is understandable given the war situation, such a significant surge was unimaginable, making it a challenging investment choice.
INPEX, related to crude oil, and Mitsubishi Heavy Industries, in the defense sector, didn’t perform well after opening high. However, bank stocks like SMFG saw an uptick. Japan Post Holdings and Kyushu FG updated their year-to-date highs, indicating significant strength. Investing with the current price range as a backdrop seems promising.
JAL and ANA started with a decline but remained relatively stable afterward. On the other hand, HIS experienced a continuous decline from the opening.
As mentioned earlier, it’s a day with low expectations for individual stock performance, so there’s no need to initiate selling trades.
Conclusion
A turning point for interest rates.
An unusual situation where both banks and high-tech stocks are being bought.
Follow the market while waiting for something to be disproven.
