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

MONTHLY REVIEWIn August, the Japanese equity market saw significant volatility against a background of hawkish monetary policy from the Bank of Japan, yen appreciation andconcerns over the economic outlook in the U.S. The 5th and 6th of August showed the largest ever daily drop and gain respectively in the Japanese equity market.
Despite the initially bleak outlook, by the mid-month Japanese markets had made a strong recovery. This month also saw Prime Minister Kishida announce that hewould be stepping down. However, it is believed that this change in leadership will have a limited effect on the economy.

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

Index

ReturnYear to Date

TOPIX

2,712.63-2.92%

14.63%

Nikkei 225

38,647.75-1.16%

15.49%

Aug-24

Jul-24End of 2023

146.17149.98141.04USD/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 August 2024, local currency)

USD/JPY (RHS)

3,000

190

5.0%

3.7%

2,900

2.4%

180

2,800
2,700

170

2,600
2,500

2.3%

2.2%

0.0%

1.8%
0.1%
-1.2%

160

2,400

-2.9%

150

2,300
2,200

-5.0%

-3.3%

140

2,100
2,000

130

1,900
1,800
Aug-23Oct-23

Dec-23

Feb-24Apr-24Jun-24120
Aug-24

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

SectorMarine Transportation

Return4.74%

SectorBanks-11.91%

ReturnPrecision Instruments

3.69%

Securities & Commodity Futures-10.71%

Retail Trade

3.60%

Metal Products-9.85%

Pharmaceutical

2.90%

Insurance-7.98%

Nonferrous Metals

1.95%

Rubber Products-7.77%

ReturnTABLE 5. BOTTOM 5 PERFORMING STOCKS*NameTicker

TABLE 4. TOP 5 PERFORMING STOCKS*
Name

Ticker

FUJIKURA

5803 JT Equity 37.53%

SUMCO

3436 JT Equity -33.07%

SANKYO

6417 JT Equity 25.67%

SHISEIDO

4911 JT Equity -30.91%

ZENSHO HOLDINGS

7550 JT Equity 24.48%

ISETAN MITSUKOSHI HOLDINGS

3099 JT Equity -27.65%

FUJI SOFT

9749 JT Equity 23.24%

YAMAZAKI BAKING

2212 JT Equity -27.44%

TOTO

5332 JT Equity 22.38%

KYOTO FINANCIAL5844 JT Equity -18.66%*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 August 2024)

1Return

Market Review for August 2024

FIGURE 3. VALUE-GROWTH SPREAD

FIGURE 4. LARGE-SMALL CAP SPREAD

20%

16%
14%
12%

10%
Value

Large

10%
8%

0%

6%
4%

Growth-10%

Small

2%
0%-20%
Aug-23Oct-23

Dec-23

Feb-24Apr-24Jun-24-2%
Aug-23Aug-24

Oct-23

Dec-23

Feb-24Apr-24Jun-24Aug-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 and
the Growth Index (Positive figure means Value dominant)

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

Quality

30.00%

Minimum Volatility

High Dividends

25.00%
20.00%
15.00%
10.00%
5.00%
0.00%-5.00%-10.00%-15.00%Aug-23Oct-23

Dec-23

Feb-24Apr-24Jun-24Aug-24*The measurement begins from the end of August 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

2,000
0

Financial Institutions-2,000

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

AprMayJunJulAug

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 August 2024)

2

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