Japanese stocks fell 5%, and the technical adjustment of the Topix index is imminent

On August 2nd, < b > Japanese stocks fell sharply as investor sentiment was hit by a strong yen and concerns about the health of the U.S. economy. The benchmark Topix index extended its early-session decline to 5%, led by financial stocks. The index is down more than 10% from its peak in July and is set to enter a technical correction. "This looks like a serious forced sell-off," said Andrew Jackson, head of Japan equity strategy at Ortus Advisors Pte. "I can imagine that many platform-based position structures are actively reducing risk, leading to a blind sell-off of any stock that is even slightly crowded." According to data from the Japan Exchange Group, foreign investors sold a net 1.56 trillion yen (about $10.50 billion) of Japanese spot stocks and futures in the week to July 26, after being the main driver of the stock market rally.