Japanese ETFs continue to decline, as of the time of writing, Southbound Double Long Nikkei (07262) fell by 3.48% to 161 Hong Kong dollars; Southbound Nikkei 225 (03153) fell by 2.23% to 122.65 Hong Kong dollars. On the other hand, Southbound Double Short Nikkei (07515) rose by 2.79% to 17.68 Hong Kong dollars. On the news front, on Monday, both the Nikkei 225 Index and the TOPIX Index closed down by 1%. Due to market concerns about the continuous high crude oil futures prices leading to inflation pressure, the long-term interest rates in the Japanese bond market have been rising recently, with the 30-year government bond yield reaching a historical high of 4.2%. When asked about the rise in Japanese government bond yields, Japanese Finance Minister Taro Aso stated that he has received instructions from Japanese Prime Minister Naoomi Koshi to minimize various risks. Huatai International released a research report stating that the rise in the Japanese stock market since the beginning of this year has been quite considerable, and the pace of the rise has been rapid. Therefore, we hold a cautiously optimistic view on the market trend for the rest of the year. The current market is still benefiting from structural positives such as improved corporate governance, profit recovery, expansion of AI-related investments, and continuous allocation of domestic and foreign funds. However, factors such as valuation increases, rising interest rates, fluctuations in raw material and energy prices, supply chain risks, and slowing external demand also suggest that future volatility could significantly increase.