Bank of America: US economic outlook and hawkish attitude of the Japanese Central Bank triggered a big dump in Japanese stocks

On August 2nd, according to the data from Jinshi, Masashi Akutsu, a strategist at Bank of America, said that concerns about the outlook for the US economy and the unexpected strong stance of the Japanese Central Bank were the main reasons for the big dump in the Japanese stock market on Friday. So far, the consensus in the market is that Japan's rate hike will be gradual, so it was a surprise when the governor of the Japanese Central Bank hinted this week that there could be multiple rate hikes soon. Despite the strengthening of the yen, the profitability of Japanese companies still looks healthy, and the market may recover once the US election is over.