TODAY'S MARKET

Entering the earnings season, it's more prudent to pay attention to the movements of specific stocks reporting their earnings rather than contemplating the overall market conditions.

The decline in US bond yields will undoubtedly benefit Japanese high-tech stocks. Therefore, it is highly anticipated to buy stocks that have been sold under significant pressure so far, as well as those that have strangely maintained their value.

Bond yields rose, causing both long-term and short-term bonds to decline. Short-term interest rates experienced significant declines for the second consecutive day, contributing to the contraction of the yield curve. Even with the decline in bond yields, the stock market did not stop falling. Amid uncertainties in the Middle East, oil-related stocks also experienced significant declines. Finding stocks that are rising has become increasingly challenging.

Bond yields increased, with the 10-year bond yield approaching 5%. On the other hand, the spread between long and short-term interest rates narrowed. Stocks continue to face the worst-case scenario.

Due to the pain caused by the high levels of 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.

Medium-cap semiconductor stocks have strong demand, making them attractive for buying when their prices drop. As long as they do not show significant declines and remain stable, buying into these stocks seems promising.

While there was a long-awaited increase in stock prices, it remains questionable how much risk can be taken to buy stocks at a day-trading level, given that bond yields do not seem to be decreasing yet. It's okay to have days when no action is taken.

In the medium term, we want to buy high-tech stocks, but the current market sentiment is very negative. The sentiment is negative, but we should look for stocks with strong fundamentals and holding power.

The market essentially mirrored the rise in US bond yields and the decline in small-cap high-tech stocks. This was supposed to be a healthy rebound...

Today's Japanese Stock Market Strategy Strategies B...