Attention turns to cyclical rotation as the shift of capital into emerging markets continues.

■ Will capital rotation into emerging markets continue this week (July 6–10)? Emerging markets may exhibit nervous trading amid concerns over short-term overheating following last week’s sharp rally, warranting caution against profit-taking selling. On the other hand, if capital continues shifting from AI and semiconductor-related stocks in major markets into emerging markets, it could provide underlying support for prices. Attention should also be paid to whether recent IPOs and stocks with individual catalysts can sustain market momentum. Last week, some of the capital that had been concentrated in AI and semiconductor-related stocks on the Prime Market began flowing into emerging markets.

Fisco JapanJul 6 07:23

Investor focus remains concentrated on large-cap stocks, while interest may broaden to newly listed IPO names.

■ Attention will focus on whether investor interest spreads to IPO stocks. This week, the emerging market may struggle to gain upward momentum. Although the market has corrected down to near its year-to-date lows—potentially attracting bargain hunters—the sustainability of any self-driven rebound will likely be tested. Particular attention will be paid to whether space-related stocks, which have been undergoing adjustments recently, stabilize on the downside, as well as whether strong performance by LiNKX <584A> triggers broader investor interest in newly listed IPO stocks. Last week saw trading activity in SQUEEZE <558A> and Inuneko Seikatsu <556A>, along with December 2023 listings.

Fisco JapanJun 29 07:33