The Nikkei average staged a sharp rebound of 1.92% from the previous day, while declining stocks outnumbered advancing stocks in the Prime Market. The influence of large-cap growth stocks pushing up the index is making it difficult to see the market's underlying picture.
The Nikkei average staged a sharp rebound of 1.92% from the previous day. At the same time, it has been pointed out that many stocks in the Prime Market declined, suggesting a possible divergence between the index's rebound and movements in individual stocks. Large-cap growth stocks, particularly semiconductor-related stocks, pushed up the index, making it difficult to see the underlying picture for the market as a whole.
In this situation, stock selection is becoming more important, and awareness of the need for risk management is growing, with it considered inappropriate to view a rise in the index alone as a broad-based market advance. Attention will focus on which stocks drive market movements and how the groups of affected stocks perform.