Against a backdrop of rising long-term interest rates, Japanese stocks are seeking a rebound in the fall. Three key events involving earnings and interest-rate trends will be in focus.
Japan's stock market in August continued the flow of funds seen in July from growth stocks into domestic-demand and value stocks, while fluctuating under the influence of earnings announcements in Japan and the US and the Jackson Hole meeting. Among the Nikkei 225 constituents' top performers, Recruit Holdings rose about 45% and Yamaha Motor also posted a sharp gain, while machinery stocks such as Ebara and FANUC were among the worst performers as investors sold them.
Trends in US long-term interest rates are weighing on stock prices. After a small number of comments at the Jackson Hole meeting suggested that the Federal Reserve was becoming less dovish, the 10-year Treasury yield rose to around 4.79%. Persistently high crude oil prices and looser supply-demand conditions in the bond market due to AI-related corporate bond issuance and other factors are also supporting higher interest rates.