Be mindful of the China headline amid a sparse trade due to the US-UK market closure; "Highlights on May 25 and Event Schedule"

Today is the 25th, a pentade, and the Tokyo market’s morning quotes may move significantly.

Today in Japan, the remaining state of emergency declarations will also be lifted, and it is likely that all prefectures will be released.

However, it seems that deregulation will be rolled out gradually by city, and not everything will be lifted at once.

Even so, the impact of COVID-19 restrictions will ease, economic reopening will begin, and it may be positive for companies.

All eyes are on whether the lifting of the state of emergency will lead to a rise in Japan’s stock prices.

◎ Today’s Points of Attention

1) China Risk

At the National People’s Congress held since the 22nd last week, a national security law was announced, and protests in Hong Kong have become more active.

Yesterday in Hong Kong, more than about 180 people were detained, leading to a developing situation.

In the US and Europe, especially the United States, the one country, two systems has ended and high-level autonomy has ended, raising concerns about capital and talent outflows from Hong Kong.

The Hong Kong market fell more than 5% on the 22nd, and today the Hong Kong market is expected to remain heavy on the upside.

Measures to restrain protests and suppress them using the National Security Law and Hong Kong demonstrations have drawn criticism from the US, the UK, Canada, Australia and others, which issued joint statements.

The National People’s Congress continues today, so protests may intensify from time to time, and international criticisms are expected to grow.

Attention is needed on China’s announcements and statements and other countries’ actions and statements toward China.

2) Low-Volume Market

Today the US and the UK are closed for holidays, so a quiet market is expected.

In such thin trading, if headlines suddenly change, prices can move dramatically.

I would like to stay properly risk-managed.

◎ Today’s Economic Calendar

May 25 (Monday)

US and UK markets closed

15:00 EUR Germany GDP (Q1)

17:00 EUR Germany IFO Business Climate

May 26 (Tuesday)

04:00 CADPoloz BOC Governor Speech

07:45 NZD NZ Trade Balance

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