Last quote by Takuya Takahashi
Takuya Takahashi quotes
Investors are more worried about the outcome of the U.S. election than before. Everyone is uncertain, and uncertainty is usually bad for the stock market.
Investors' risk stances have improved since the upbeat U.S. data, so unless the dollar falls against the yen further, the market should not fall sharply.
Nothing has been decided yet... we are not 100 percent sure on a U.S. rate hike or a Clinton presidency. But the outcomes of the key events over the weekend were seen helping the Japanese market.
If Clinton becomes president, investors' risk stance will likely recover.
There won't likely be any outcome affecting the Japanese market directly, but investors are watching how the currency markets will move. Anything triggering fears for a strong yen trend is negative to stocks.
Investors are adjusting their positions today and they are buying back recently battered financial stocks, but they still remain risk averse before the big events next week.
For Japanese stocks, the result turned out to be positive after U.S. stocks rose and the yen weakened.
Comments from Fed officials are influential, so we will continue to monitor the forex market which has a big impact on Japanese stocks.
ETF buying has a direct positive impact to the stock market, but its decision to hold off bond buying hit the dollar-yen. Since a stronger yen has a much bigger impact to the equities market (than ETF buying), it was not a satisfying outcome to stocks after all.
People who bought the yen and sold stocks last week seem to be unwinding their positions. The market will likely stay resilient this week as buying before the ex-dividend date should also help.