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