Bosera Group: The volatility of the Japanese stock market may increase in the second half of the year.

Jin10 data reported on July 21 that the Swiss Bank Julius Baer has released a report stating that due to rising political and financial uncertainties, the Japanese stock market may face greater fluctuations in the second half of the year. Magdalene Teo, the head of Asian fixed income research at the bank, pointed out that if the Japanese government implements cash distributions and consumption tax reductions in September and October, consumer stocks may benefit in the short term. Given the ongoing uncertainties related to tariffs, if the consumption tax reduction policy is extended, investors may shift towards domestic demand-oriented industries. In the long run, Julius Baer believes that corporate fundamentals will be the key driving force behind stock market performance. Driven by corporate reforms, improvements in governance structures, and enhanced return on equity, the bank remains optimistic about the outlook for the Japanese market and views the recent market weakness as a good opportunity to invest in quality companies.