Nomura strategist Naka Matsuzawa said that as long as the yen remains weak, the rise in the Japanese stock market is expected to continue; this wave of gains occurred after Sanae Takaichi was elected leader of the Liberal Democratic Party and is known as the “high market market.” He attributed this week's rise to futures-driven buying, which has pushed the expected price-earnings ratio of the Japanese stock market to 17.0 times, the highest level since Abe took office. He also said that despite being skeptical about Sanae Takaichi's policy stance, foreign investors who suspended stock purchases after Japan's July Senate election are rebuilding their positions. Matsuzawa said that growth stocks outperformed value stocks, reflecting rising market expectations for long-term economic growth or excessive market liquidity. However, he cautioned that if the new administration adopts the adviser's view that the USD/JPY exchange rate above 150 yen is too high, and it is unlikely that interest rates will rise in October, then the “high market” may lose momentum.

Nomura strategist Naka Matsuzawa said that as long as the yen remains weak, the rise in the Japanese stock market is expected to continue; this wave of gains occurred after Sanae Takaichi was elected leader of the Liberal Democratic Party and is known as the “high market market.” He attributed this week's rise to futures-driven buying, which has pushed the expected price-earnings ratio of the Japanese stock market to 17.0 times, the highest level since Abe took office. He also said that despite being skeptical about Sanae Takaichi's policy stance, foreign investors who suspended stock purchases after Japan's July Senate election are rebuilding their positions. Matsuzawa said that growth stocks outperformed value stocks, reflecting rising market expectations for long-term economic growth or excessive market liquidity. However, he cautioned that if the new administration adopts the adviser's view that the USD/JPY exchange rate above 150 yen is too high, and it is unlikely that interest rates will rise in October, then the “high market” may lose momentum.