UBS says 'going into Japan now is like catching a falling knife,' warns stock sell-off will continue

Category: Finance

Kelvin Tay from UBS Global Wealth Management warns that entering the Japanese market now is risky due to significant declines in the Nikkei 225 and Topix, which have fallen over 12%. The Japanese yen's recent strengthening, following a rate hike by the Bank of Japan, is pressuring stock markets dominated by export-oriented firms. Tay notes that the yen's fluctuations are crucial for market performance, and while some corporate restructuring has occurred, the main influence remains the yen's value. He predicts the yen could strengthen further, making the Japanese market less attractive for investment.

Keywords: Japanese market, Nikkei 225, yen carry trade

Source: CNBC

Update At: 8/5/2024

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