While European stocks rose sharply on expectations of fiscal expansion, US tech stocks and other sectors were weak. Japanese stocks also slumped.
Concerns about a US recession may be overdone, and there is hope for the implementation of positive policies such as tax cuts by the US administration in the future.
In Europe, countries such as Germany have turned to fiscal expansion, and the possibility of boosting economic growth is increasing. China is also set to increase its fiscal spending.
Regarding Japanese stocks, we can expect to see an improvement in the performance of export-related manufacturers due to the recovery in demand forecasts in Europe and China.
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Written by Hitoshi Asaoka, Senior Strategist, Asset Management One Co., Ltd.