Due to the recent geopolitical turmoil in the Middle East and the U.S. unemployment rate triggering the "Sam Rule" that indicates an economic recession, the Japanese stock market suffered a massacre yesterday, with a single-day collapse of 12.4%, which once triggered the circuit breaker mechanism.
However, after the opening of trading today, unlike the continued downward trend of US stocks, the Japanese stock market reversed Monday's decline and surged. At the time of writing, Japan's two major stock indexes, the Nikkei 225 Index and the Topix Index, both achieved gains of more than 10%.
Expert: Panic selling may be over
In this regard, Hideyuki Ishiguro, chief strategist at Nomura Capital Management, said:
The panic selling may have run its course, and investors may be buying back shares. However, today's price action could be a rollercoaster as anxiety rises in global markets.
In addition, Citibank analysts headed by Ryota Sakagami also issued a report saying:
We believe Japanese stock prices have already priced in a mild US recession and an appreciation of the yen to 140 yen, so downside is limited. However, we expect it to take some time to recover and that risk-off trade will continue to dominate the market in the short term.
However, the dynamic zone reminds investors that the current market panic is still high and there are many market uncertainties, so they should pay attention to the risk of market fluctuations.
