It's hard to predict a support level with downward momentum so strong, but it could be as low as 16,000 for the mid-term. At this point, I'm not quite sure if a rebound on the Nasdaq could help Tokyo stocks recover.
Unless the US stock market enters a serious downtrend for some reason, the domestic stock market should continue its bull run going forward.
The fact that Softbank drew active buying even after it entered ex-dividend shows strong interest for equity investment by retail investors.
No one knows what the market will look like next year and a profit warning from Intel does not bode well.
Investors are now accelerating buying of domestic demand-linked shares such as property developers and retailers on growing expectations that the Japanese economy is on track to overcome deflation.
As consumers are clearly changing their spending attitude, the retail sector may continue to benefit.
We got a taste of good news after days of gloom and the market went with it.
