Monthly Report
July Market Outlook

July 2024
Daiwa Asset Management Co. Ltd.

Japanese Equities
Equity Prices Underpinned by Favorable Supply andDemand Despite Concerns over Political Factors inJapan and Abroad

TOPIX Total
Return Index

June end

MoM

4,778.56 Points

1.45%[Market review in June]
Equity prices in Japan rose in June. In the first half of June, equity prices fell against the backdrop ofirregularities of certification regulations tests by multiple major automakers, a retreat in expectations
for a US rate cut following positive US employment statistics, and caution about the monetary policy
meetings in Japan and the US. In the latter half of the month, equity prices temporarily reacted
negatively to political unrest in Europe, particularly in France, but moved higher in what appeared to
be a reaction to this trend, while also benefiting from the Yen’s depreciation in response to higher
overseas interest rates.
[Outlook]
We believe that investors will easily hold off on investing because of concerns about the current soft
economic indicators and political uncertainty due to the declining approval rating of the Cabinet inJapan, as well as the upcoming US presidential election in November. However, the BOJ expressedthe view that the relaxed monetary environment would continue for the time being, there are also strong
expectations that companies will strengthen shareholder returns for more capital cost-conscious
management, and that more funds from individual investors will flow into the equity market as a resultof the expansion of the NISA investment cap. From all of this, we expect a solid equity price trend.
Positive Factors

Negative Factors

 Strengthening ofshareholder returns Improved risk sentiment
due to the start of USinterest rate cuts
 Improvement in thesituation in Ukraine andMiddle East

 Further slowdown of theChinese economy Rapid appreciation ofthe Yen Growing political unrestin many countries
As of June 28, 2024
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