Japanese stocks decline 2021-10-21
Probably a unwind of overseas investors' futures long positions.
They probably started to unwind the futures long positions that had been built up since Mr. Kishida announced his candidacy for the leadership on August 26.
The trigger is unknown. Since the reason is unknown, it is also unclear whether selling will continue.
The long position in the arbitrage balance that reflects overseas investors' futures positions (the gray line) has likely been unwound.
The reason is unknown.
Could it be that the election result suggested the Liberal Democratic Party would not have an outright majority?
Could it be that the Kishida administration is believed unable to achieve economic recovery?
In any case, I don’t expect a sharp decline, but it also seems difficult to push higher.
