Key Facts
• June 23: U.S. attack on Iran raised global market concerns.
• June 20: Nikkei 225 dropped over 370 points but recovered to close 49 points lower.
• July 4: Nikkei 225 surpassed 39,000 points, briefly exceeding 40,000 points.
• July 7: Historically low Nikkei 225 win rate on this date (3 wins, 12 losses since 2004).
• Nikkei 225’s price-to-earnings ratio (PER) remains in the mid-15 range, not overbought.
• July 9: Deadline for new U.S. tariffs under Trump’s trade policy.
• U.S. President Trump announced a potential 70% tariff adjustment for 12 countries.
• Japanese market expected to react first to global weekend events.
Summary
The Japanese stock market faces a pivotal week, influenced by global events and U.S. trade policies. The Nikkei 225 recently surpassed key resistance levels, briefly exceeding 40,000 points, signaling market strength. However, historical data shows July 7 as a challenging day for the index. Investors are closely monitoring the July 9 tariff deadline and its potential impact. Despite uncertainties, the market remains resilient, with a stable price-to-earnings ratio and opportunities for strategic buying during dips.
