Monthly Report
June Market Outlook

June 2024
Daiwa Asset Management Co. Ltd.

Japanese Equities
Enhanced Shareholder Returns for Capital CostConscious Management

TOPIX Total
Return Index

May endMoM

4,710.15 Points

1.16%[Market review in May]
Equity prices in Japan rose in May. In the first half of May, after the US consumer price index andother indices fell and the US interest rates also went down, domestic equities rose at times in tandemwith US equities. But equity prices remained flat throughout the month, weighed down by risinginterest rates on speculation of the BOJ’s plan to reduce its purchases of JGBs and other factors. Inthe latter half of the month, stock prices were at times uncomfortable with rising long-term interest
rates, but remained firm, supported by the trend of US equities reaching new highs, which positively
impacted domestic equities, and by the better-than-expected shareholder return policy.
[Outlook]
We need to be careful about the upward pressure on interest rates on speculation of the BOJ’s
additional rate hikes and other factors, and the possibility that US interest rate cuts will be delayed,which may soften the US equity market and further negatively impact the domestic equity market. The
BOJ expressed the view that the relaxed monetary environment would continue for the time being.
However, there are also strong expectations that companies will strengthen shareholder returns formore capital cost-conscious management, and that more funds from individual investors will flow into
the equity market as a result of the expansion of the NISA investment cap. From all of this, we expect asolid 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 Delayed start of USinterest rate cuts Further slowdown of theChinese economy Rapid appreciation ofthe Yen
As of May 31, 2024
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