News & Insights

TOPIX ended up on the previous month-end. Although the Japanese equity market was dampened by concerns over the default of the large Chinese property company, Evergrande and an increase in US bond yield, it rose on the expectations for new leadership after Prime Minister Suga’s announcement to step down and for the normalisation of economic activities with steady progress of Japan’s vaccination campaign.

TOPIX ended up on the previous month-end. Solid Japanese corporate quarterly earnings results suggested Japan is on track to a recovery from the impact of the pandemic and this pushed the market higher. Although the market temporarily declined on the declaration of the fourth state of emergency following a spike in the number of COVID-19 cases, the news of the US bipartisan infrastructure bill passing in the Senate underpinned the market.

TOPIX ended down on the previous month-end. Concerns over an increase of COVID 19 variant cases capped the upside of the Japanese equity market throughout the month. Whilst a rise in US equity market and a solid Japanese economic statistics supported the market, the announcement of the fourth state of emergency in major cities in Japan following the spread of COVID 19 due to the variant, shaved investors’ sentiment and fuelled uncertainty over the outlook for the recovery of economic activities.

TOPIX ended up on the previous month-end. The Japanese equity market was driven by the US equity market throughout the month. At the beginning of the month, the market rose on the good progress of the vaccination program in Japan. The market plunged after an earlier than expected tapering was hinted at by the Federal Open Market Committee (FOMC) followed by a sharp fall in the US equity market. However, the market gradually offset the fall as US interest rate stopped rising towards the month-end.

TOPIX ended up on the previous month-end. The market was supported by a pause in the rising number of COVID-19 cases in Japan and expectations for the progress of vaccination program whilst the market was temporarily impacted by a plunge of US IT stocks following a hike in US treasury rate in mid-month. The state of emergency in Japan which was extended by another month to mid-June but it did not affect the market.