Japanese ETFs extended their losses. At the time of writing, the leveraged long Nikkei 225 ETF (07262) fell 3.48% to HK$161, while the standard Nikkei 225 ETF (03153) dropped 2.23% to HK$122.65. Conversely, the leveraged short Nikkei 225 ETF (07515) rose 2.79% to HK$17.68.
On Monday, both the Nikkei 225 and the TOPIX indices closed down 1%. The recent rise in long-term interest rates in the Japanese bond market, with the 30-year government bond yield briefly reaching a historic high of 4.2%, has been driven by market concerns over persistent inflation pressure from elevated crude oil futures prices.
When asked about the rising Japanese government bond yields, Finance Minister Tsuyoshi Katayama stated that he had received instructions from Prime Minister Hayao Kawachi to minimize various risks as much as possible.
A research report from Haitong International noted that the gains in the Japanese stock market since the beginning of this year have been substantial and rapid. Therefore, the firm maintains a cautiously optimistic outlook for the market's performance for the remainder of the year.
While the market continues to benefit from structural tailwinds such as improvements in corporate governance, recovery in profitability, expansion of AI-related investments, and ongoing allocation of domestic and international funds, factors including elevated valuations, rising interest rates, volatility in raw material and energy prices, supply chain risks, and a slowdown in external demand suggest that market volatility may significantly increase going forward.
Comments