Group 1 - The Japanese stock market is experiencing a significant rise, with some market indicators approaching levels seen before last year's crash, driven by the US-Japan trade agreement pushing indices to historical highs [1] - Concerns are raised about the current market's vulnerability, as technical indicators show similarities to the situation before last year's sell-off, particularly with the Tokyo Stock Exchange index (TSE) reaching a 14-day Relative Strength Index (RSI) of approximately 79, indicating potential overbought conditions [1] - The TSE index is currently more than 5% above its 25-day moving average, a deviation historically associated with market corrections, as seen in September 2021 and March 2022 [4] Group 2 - The recent rise in the TSE index has not been accompanied by an increase in trading volume, suggesting a lack of strong market confidence [7] - As the summer season approaches and trading volume decreases, the market may face volatility following the rapid increase, with many companies likely to adopt cautious outlooks during the earnings season due to tariff impacts [10] - The forward price-to-earnings ratio of the TSE index has reached 15.7 times, nearing the 15.87 times level seen before last August's decline, although it remains cheaper compared to US stocks [10]

Group 1: U.S. Stock Market Performance - The U.S. stock indices closed higher on Friday, with the non-farm employment data for May exceeding expectations, alleviating recession fears [1] - The S&P 500 index surpassed the 6000-point mark for the first time since February 26, with year-to-date gains of 2.02% for the S&P 500, 1.13% for the Nasdaq, and 0.51% for the Dow Jones [2] Group 2: Diverging Opinions on Market Outlook - Morgan Stanley's chief equity strategist, Lakos Bujas, reversed his previous bearish outlook, now predicting the S&P 500 will close at 6000 points this year, citing a potential short squeeze and increased buying from institutional investors [5] - Bank of America strategist Michael Hartnett issued a warning that the global stock market, after reaching new highs, is approaching a technical "sell" signal, indicating a potential market correction [5][6] Group 3: Global Capital Flows and Asian Market Attraction - In May, foreign investors bought approximately $10.6 billion worth of Asian stocks, marking the largest net inflow in 18 months [12][13] - Goldman Sachs raised its earnings growth forecast for the Asia-Pacific region, excluding Japan, to 9%, driven by stronger macroeconomic growth in China and the U.S. [14] - Major financial institutions, including Morgan Stanley, JPMorgan, Goldman Sachs, and HSBC, are optimistic about China, citing valuation advantages and low investor positioning in Chinese stocks [15][16][17][18]

Group 1 - Global stock markets are approaching a technical "sell" signal after reaching historical highs, with a warning from Bank of America strategist Michael Hartnett about the risk of a market collapse due to excessive investor enthusiasm [1][2] - Approximately 84% of national stock indices are above their 50-day and 200-day moving averages, with a threshold of 88% triggering preset sell conditions [2] - Year-to-date, global equity funds have attracted around $515 billion in inflows, potentially marking the second-highest record in history, while cash funds saw an influx of $94.8 billion in the past week, indicating a shift towards safer assets [2]