Press Conference by SUZUKI Shunichi, Minister of Finance and Minister of State for Financial Services

(Excerpt)

(Thursday, August ８, 2024, 10:51 am to 11:03 am)

Q.

In response to the latest volatile stock market, the government call on people to act calmly. However, what do you think of the recent market fluctuations? Do you think that the fluctuations are too large or may be caused by some speculative moves? 

A.

Stock price levels are affected by various factors, such as economic conditions, the status of exchange markets, companies' activities, and future policies, and are determined by the market based on investors' judgments regarding those factors.
At this stage, we should closely watch the market trend, the recent trend of the volatile stock market as you mentioned.
We are still not at a stage where any concrete measures are needed. I think that we should let stock prices be determined by the market, in principle.

Q.

Behind the background to the volatile stock market, some point out a possible influence of high-speed trading based on algorithmic strategies. There may be a situation where individual investors who cannot catch up with such moves sustained losses. What do you think of this?

A.

I read a news article to that effect.
However, as I told you, there are various factors, and investors buy and sell stocks based on their judgment regarding those factors, and stock prices are eventually determined by the market. I do not totally deny the influence of such trading, but it is merely one of the complicated factors. I think it inappropriate to say that any one factor causes stock price fluctuations.
I do not mean to eliminate high-speed trading based on algorithmic strategies as one factor, but my understanding is that stock prices are determined at any rate based on various factors.