TOKYO (Reuters) – Today’s Tokyo stock market is expected to weaken the Nikkei stock average. The three major US equity markets had mixed performances yesterday, but the decline in the Nasdaq Composite could put pressure on technology and growth stocks, he said. Furthermore, the US consumer price index (CPI) is expected to be released tomorrow and the wait-and-see attitude is expected to gradually strengthen. Despite the general sentiment of weakness, some have speculated that domestic demand stocks could experience steady price movements.
The expected range for the Nikkei Stock Average is between 26,200 yen and 26,500 yen.
On the US stock market the previous day, the S&P 500 and Nasdaq Composite fell to close. The anxiety spread after Bank of England Governor Andrew Bailey said he would not extend emergency bond purchase measures.
US long-term interest rates stood at 4.006%, approaching a 12-year high of 4.019% set last month. It currently stands at around 3.94%.
Today’s Japanese stock market is expected to weaken. In addition to the ongoing adjustment of US equities, given consistently high US interest rates, “technology stocks and growth stocks are likely to remain weak,” said Masahiro Ichikawa, chief market strategist of Sumitomo Mitsui DS Asset Management. The Nikkei stock average is likely to move around the low end of 26,000 yen.
On the other hand, easing border measures and government “National Travel Support” continue to be welcomed and domestic demand stocks, such as travel-related stocks, are expected to grow steadily. Mr. Ichikawa said: “Looking at the news, the recovery in travel appears to be strong, which could lead to a sense of security in buying (travel-related stocks).”
With the US CPI announcement in September scheduled for announcement tomorrow night, an atmosphere of anticipation is likely to build. If the CPI exceeds market expectations, stocks are likely to correct, he said.
Under the main schedule, machine orders in Japan are expected to be announced in August (Cabinet Office) and machine tool orders in September (Machine Tool Builders’ Association). Abroad, in the United States, the announcement of the September Wholesale Price Index (Ministry of Labor) and the minutes of the United States Federal Open Market Committee (FOMC) is expected.
Closing price of the previous business day. High price since the beginning of the year. Low price since the beginning of the year
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Chicago Nikkei Stock Average Futures 26350 (denominated in yen)
