A pedestrian looks at an electronic stock board outside a securities firm in Tokyo, Japan, on Tuesday, Dec. 25, 2018.
Japan's stock markets have hit a six-month low, declining for two straight days, after the Bank of Japan raised benchmark interest rates to their highest level since 2008.
Speaking to CNBC's "Squawk Box Asia," Bruce Kirk, chief Japan equity strategist at Goldman Sachs said that the Japanese market rally had reached a "transitional phase."
Yes, there's a fundamental shift taking place in the market, but it's not unusual," Kirk said.
"I think people are now looking for areas that are more domestic demand focused, and that's really putting the interest back on Japan's small [and] mid-caps."
Persons:
Bruce Kirk, Goldman Sachs, Kirk
Organizations:
Bank of Japan, Nikkei, CNBC
Locations:
Tokyo, Japan