The market is experiencing strong selling pressure for risk aversion. This week, the emerging markets fell significantly. Compared to the Nikkei's -4.67%, the growth market index fell sharply by -9.62%, and the growth market 250 index fell by -10.36%. Going back to the old Mothers index, it has fallen by -10.61% since the first week of January 2022. Like the Prime market, with the rapid rise of the yen after the meeting of the central banks of Japan, the U.S. and China and the increasing concern over the U.S. economic slowdown, there has been increased selling pressure for risk aversion, and the major stocks with a large market capitalization have collapsed. Some biotechnology stocks are still being favored, but on August 2nd, the growth market 250 index fell by -7.53% compared to the previous day, which is the largest drop since the -9.75% in the old Mothers index at the time of the corona shock. The number of rising stocks in the growth market that day was only 10, and 98% of the growth constituent stocks fell, resulting in an overall decline.
This week, the emerging markets fell significantly. Compared to the Nikkei's -4.67%, the growth market index fell sharply by -9.62%, and the growth market 250 index fell by -10.36%. Going back to the old Mothers index, it has fallen by -10.61% since the first week of January 2022. Like the Prime market, with the rapid rise of the yen after the meeting of the central banks of Japan, the U.S. and China and the increasing concern over the U.S. economic slowdown, there has been increased selling pressure for risk aversion, and the major stocks with a large market capitalization have collapsed. Some biotechnology stocks are still being favored, but on August 2nd, the growth market 250 index fell by -7.53% compared to the previous day, which is the largest drop since the -9.75% in the old Mothers index at the time of the corona shock. The number of rising stocks in the growth market that day was only 10, and 98% of the growth constituent stocks fell, resulting in an overall decline.
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The market is expected to remain difficult, and there will be no IPOs.
Next week's emerging markets are expected to continue to be challenging. Over the weekend, the U.S. market fell significantly due to the market's lower-than-expected employment statistics for July, which increased concerns about the U.S. economic slowdown and caused a large drop in major stock indices. As of this weekend, the growth market 250 index has fallen to the level of the corona shock in March 2020, and it is highly likely to drop significantly next week.
In the U.S., the 10-year bond yield has dropped significantly below 3.8% since last December, but the Russell 2000 index, which is composed of small and mid-cap stocks, has also fallen by nearly 7% on a weekly basis, which is not a stimulus for the growth market and is rather a selling material. Both in Japan and the U.S., investors are rapidly deteriorating their sentiment, and they are just looking at the falling knife. We would like to confirm the bottoming out, but since many investors are skeptical, we need to wait for the calming of the foreign exchange market and the dispelling of concerns over the U.S. economic slowdown.
Since there are no new IPOs scheduled for next week, the elimination of factors will continue to be the focus of attention, with a shift to small biotech stocks with low price fluctuations, such as OTS, Anges, Medinet<2370>, Bright Path Bio<4594>, and Ribomic<4591>. In terms of stocks with prices in the tens of yen, Furu-ta Furu-ta<2586>, Mobcast HD<3664>, Ambient Company HD<3777>, and Kubota Confectionery HD<4596> are also likely to be targeted. Although there is expected to be increased trading volume due to an active search of these small-cap stocks, the purchase of major stocks is expected to be restrained, resulting in a trade value of around 100 billion yen.