Today’s Japanese Stock Market Strategy
Strategies
- Sell Large-Cap Semiconductor Stocks
- Sell High-Tech Stocks
Explanation
Due to the rise in interest rates, stocks are declining. There is a high possibility of selling from the opening price. It is advisable to enter with a selling strategy. However, medium-sized semiconductors like Rorze and TOWA might be exempt from selling. If selling, it should be large-cap semiconductors like Laser Tech and Tokyo Electron. The supply and demand for medium-sized semiconductors are very good, so they are unlikely to fall significantly without a substantial blow. It would either take a long time to adjust or require a powerful impact to cause a significant decline. On the other hand, large-cap semiconductors generally have less favorable supply and demand, so there could be substantial profit margins for day trading even after selling them today.
Regarding the second strategy, besides semiconductors, selling stocks that have been consistently reaching 52-week lows would be a wise choice. GMOPG and M3 seem suitable. It’s advisable not to chase after them too deeply but instead sell straightforwardly during the opening or breakout from consolidation. This method might offer a low-risk opportunity to profit from price movements.
Due to the high levels in U.S. bond yields, it’s challenging to enter the stock market with buy positions. However, if there are movements that quickly counter the new highs, it’s necessary to consider buying. Recognizing the difficult situation, it’s crucial to be decisive and conscious of risk management.
Review of Today’s Japanese Stock Market
Prominent Movers
- Large-Cap Semiconductor Stocks
- REITs
Explanation
Most stocks opened lower, making it challenging to actively sell. Large-cap semiconductor stocks opened about 3% lower, but they could only add around 2% more to the decline.
Medium-sized semiconductor stocks held up well. TOWA continued to rise, reaching new 52-week highs. As the market heats up, it’s important to be cautious and prepared for significant downturns at any time.
In Japan, interest rates are rising, with 10-year bond yields exceeding 0.8%. Despite this, REITs performed steadily today. Although they dipped slightly before closing, the limited decrease in response to rising bond yields suggests a strength to rise amid negative factors.
Conclusion
In any case, the market is influenced by U.S. bond yields.
