Ueda Shock Tokyo Stock Exchange falls by approximately 8，000 yen in three business days， as the “Ueda Shock” shows no sign of stopping， with the accelerating appreciation of the yen also contributing to the situation．
The Nikkei Stock Average continued to fall sharply on the Tokyo Stock Exchange on Monday, the 5th, closing at 31,458.42 yen, down 4,451.28 yen from the previous week’s closing price. The decline was the largest ever, and the drop over the three business days from last week 1st exceeded 7,600 yen, approaching 8,000 yen. The “Ueda shock,” which was triggered by Bank of Japan Governor Kazuo Ueda’s suggestion on July 31st that there would be an additional interest rate hike this year, is showing no signs of stopping. On the 5th, the Tokyo stock market was subject to “panic selling” as all market participants, including overseas institutional investors, hedge funds, and individual investors, moved to sell. The trigger was the release of the U.S. employment statistics on the evening of the 2nd (Japan time), which led to growing concerns about a slowdown in the U.S. economy and caused U.S. stocks to fall sharply. Due to concerns about the future of the economy, investors in the Tokyo market became more risk averse, and stocks from a wide range of industries, including export-related stocks, semiconductors, and finance, were sold. The Tokyo Stock Exchange’s closing price on the 1st of last week fell sharply, by 975 yen from the previous day, and on the 2nd it closed down by 2,216 yen from the previous day, recording the second-largest drop in history after the day after the U.S. stock market crash of 1987, known as Black Monday. This time too, US economic indicators such as the US manufacturing purchasing managers’ index (PMI) generally suggested an economic slowdown, so the impact spread to the Tokyo market as well. However, the sharp decline is also said to be due in part to the rapid appreciation of the yen and depreciation of the dollar in the foreign exchange market, and many see the main cause as the Bank of Japan’s decision to raise interest rates at its monetary policy meeting on July 31. Immediately after the Bank of Japan decided to raise interest rates, the United States hinted at the possibility of considering a rate cut at its September Federal Open Market Committee (FOMC) meeting, which led to awareness of the narrowing of the interest rate gap in the future, and the trend of buying yen and selling dollars became clear. On the 5th, on the Tokyo foreign exchange market, the yen was trading at around 141 yen per dollar, up by more than 4 yen from the morning, reaching its highest level against the dollar in about seven months. As a result of this trend, the Tokyo Stock Exchange has seen a continued widespread sell-off of shares in export-related companies, particularly in the automobile industry. Related [Bank of Japan interest rate hike] Bank of Japan Governor Ueda: “Wages will rise first, and then housing interest rates will rise. The burden is reduced” ★3 [paradise★] The TSE interest rate hike shock has caused the yen to plummet day after day, and the US stock market decline has spurred it to fall by over 2000 yen at one point. Was the Bank of Japan’s timing right? ★4 [paradise★] ★12024/08/05 (Mon) 16:02:56.42 ※Previous thread [Ueda Shock] TSE falls by about 8000 yen in three business days. The “Ueda Shock” continues unabated, and the accelerating yen appreciation is also a factor ★6 [paradise★].
>>1 Strong yen → Japanese manufacturers weakened, worst suicide rate, worst employment rate, trade deficit, Chinese and Korean manufacturers favored Weak yen → Japanese manufacturers revived, suicide rate improved, employment rate 99%, trade surplus, Japanese manufacturers strike back China, Korea and Pakistan “Oppose a weak yen!” ← Answer check ’.
>>1 Until now, it has been foreign investors who have been pushing up the value of Japanese stocks. Exchange rates have returned to levels six months ago, so stock prices have also mechanically returned to levels six months ago.
>>1 If the recent stock market decline is due to the Bank of Japan’s interest rate hike, it is the responsibility of the media, which incited the business community and the public to pressure the Bank of Japan to raise interest rates, and continued to cut off the Bank of Japan’s escape route, resulting in the interest rate hike.
“The amount of profit required to make up for losses increases exponentially as losses increase.” Profit rate required to make up for losses = 1/(1-loss rate)-1 Take profits at 1,000 ryo, cut losses at 10,000 ryo.
I was really fooled. They said that Japanese stocks are too cheap from an overseas perspective, so they will rise regardless of performance. Are you kidding me?
In the slave nation of Japan, they talk about moving from savings to investment, but this is merely about saving money in investment trusts for 40 years without cashing it out on the securities market, and then slowly cashing it out as retirement funds to live off the rest of your life, instead of the collapsed public pension system. It doesn’t assume that people will make huge profits from short-term trading, futures, FX, or Bitcoin differential settlement. It is something that should never happen if all individuals become rich through investment and become unemployed and no longer need to work to make a living. In such a society, there is no way they will seriously provide the people with a methodology to free them from the chains that bind them to the status of labor slaves.
Futures are amazing. They want individuals to buy them, so they can’t hide their tails. There’s no way anyone would buy them up as an individual in the current state.
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