Market Review for July 2024
This is a marketing communication. Please note past performance information does not predict future returns.

MONTHLY REVIEWIn July, the Japanese equity market saw significant fluctuations. At the start of the month the Nikkei 225 and TOPIX indices reached new historic highs riding the waveof the weak yen and strong US markets but ultimately ended the month in negative territory, dropping by 1.2% and 0.5% respectively. In terms of the TOPIX,
downward movement was driven by a drop in the TOPIX 100 large cap index while small caps in the TOPIX Small remained flat and mid caps in the TOPIX Mid400saw gains. Alongside a tumultuous political and economic environment in the US as the election hots up and US stock indices falling back from historic highs earlier inthe month there have also been significant movements in the Japanese economic sphere. The 31st of July saw the Bank of Japan raise its policy rate from 0-0.1% to0.25%. Following this, the yen surged to the 149 yen to the dollar level, a sharp increase from the 38 year low of 161.7 yen/dollar that was seen at the start of themonth.

TABLE 1. MARKET PERFORMANCE(as of the end of July 2024)

Index

ReturnYear to Date

TOPIX

2,794.26-0.55%

18.08%

Nikkei 225

39,101.82-1.22%

16.85%

Jul-24Jun-24End of 2023

160.88149.98141.04USD/JPY**Bloomberg's preferred default source of generic FX data

FIGURE 1. TOPIX and USD/JPY
TOPIX (LHS)

FIGURE 2. GLOBAL EQUITY MARKET MONTHLY PERFORMANCE(as of the end of July 2024, local currency)

USD/JPY (RHS)

3,000

190

5.0%

2,900

2.5%

180

2,800
2,700

170

2,600
2,500

1.5%

1.5%

1.1%

0.0%
-0.5%

160-0.6%

150

2,300
2,200-1.0%

-1.2%
-2.1%

2,400-5.0%

140

2,100
2,000

130

1,900
1,800
Jul-23

Sep-23

Nov-23Jan-24Mar-24May-24

120
Jul-24

TABLE 2. TOP 5 PERFORMING SECTORSTABLE 3. BOTTOM 5 PERFORMING SECTORS

SectorPharmaceutical

ReturnSectorTransportation Equipments

Return7.98%

Construction

5.85%

Electric Power & Gas-4.89%

Real Estate

4.93%

Nonferrous Metals-4.79%

Foods

4.70%

Electric Appliance-4.03%

Metal Products

3.72%

Machinery-3.94%

ReturnTABLE 5. BOTTOM 5 PERFORMING STOCKS*
Name
Ticker

-7.27%TABLE 4. TOP 5 PERFORMING STOCKS*NameTicker

BAYCURRENT CONSULTING

6532 JT Equity 40.28%

LASERTEC

6920 JT Equity -25.66%

SEIBU HOLDINGS

9024 JT Equity 27.06%

SOCIONEXT

6526 JT Equity -19.19%

NS SOLUTIONS

2327 JT Equity 26.51%

DISCO

6146 JT Equity -18.97%

SUMITOMO FOREST

1911 JT Equity 25.56%

RENESAS ELECTRON

6723 JT Equity -14.32%

KEWPIE

2809 JT Equity 20.29%

EBARA

6361 JT Equity -13.74%*Stocks with a market cap of over JPY 500 billion at the beginning of the monthNote. Figures on this sheet are from SuMi TRUST, Bloomberg, NEEDS, MSCI and Nomura (as of July 2024)

1ReturnMarket Review for July 2024

FIGURE 3. VALUE-GROWTH SPREAD

FIGURE 4. LARGE-SMALL CAP SPREAD

20%

14%
12%
10%10%
Value

Large

8%
6%

0%

4%
2%

Growth-10%

Small

0%-2%-20%
Jul-23

Sep-23

Nov-23Jan-24Mar-24May-24-4%
Jul-23

Jul-24

Sep-23

Nov-23Jan-24Mar-24May-24

Jul-24

Note: The spread between the Russell/Nomura Large Cap Index andthe Small Cap Index (Positive figure means Large Cap dominant)Note: The spread between the Russell/Nomura Value Index andthe Growth Index (Positive figure means Value dominant)

FIGURE 5. MSCI JAPAN FACTOR INDEXES SPREAD AGAINST MSCI JAPAN*
35.00%

Quality

Minimum Volatility

High Dividends

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%-5.00%-10.00%Jul-23

Sep-23

Nov-23Jan-24Mar-24May-24

Jul-24*The measurement begins from the end of July 2023, starting from 0%.

FIGURE 6. MONTHLY INVESTMENT ACTIVITIES BY INVESTOR TYPE IN THE JAPANESE EQUITY MARKET**(JPY billion)
10,000Individuals

8,000
6,000

Overseas Investors

4,000

Pensions

2,0000Financial Institutions-2,000

Others-4,000-6,000-8,000-10,000
JanFebMarAprMayJunJul

Aug

SepOctNov

Dec**Latest month figures are until the 3rd week of the monthNote. Figures on this sheet are from SuMi TRUST, Bloomberg, NEEDS, MSCI and Nomura (as of July 2024)

2YTD

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