TOKYO (Reuters) – The Tokyo stock market today is expected to see a soft run for the Nikkei Stock Average. The previous day’s US stock market is expected to start selling forward, following the trend of continued economic concerns and the decline of the three major indexes. Today, the announcement of the results of the Bank of Japan’s monetary policy meeting and the governor’s press conference are ahead, so volatile price movements are expected.
The expected range for the Nikkei average is 27,000-27,350 yen.
In the US stock market the previous day, the three major indexes fell for four consecutive days. Fears that the US Federal Reserve’s aggressive interest rate hikes to curb inflation could lead to a recession pushed the index down.
Today’s Nikkei Stock Average is expected to be weak, following the downward trend in the US stock market. Yutaka Miura, Senior Technical Analyst at Mizuho Securities, said, “The opening is expected to start with a decline due to the fall in US stocks.
In the US stock market the day before, high-tech stocks were weak due to the rise in US long-term interest rates, so Japanese stocks are also expected to lead the sell-off, mainly in stocks related to semi- conductors. A strategist at a domestic securities firm said, “The price has continued to fall until the previous day, and it seems likely that bargain buying will help around the psychological milestone of 27,000 yen.”
After the end of the round, the Bank of Japan meeting and the governor’s press conference will be held, and “aggressive trading may be stopped,” he said. With some reports that the joint statement by the government and the Bank of Japan will be revised, the market is paying attention to Governor Kuroda’s comments. Continuing from the previous day, it is believed that bank stocks are likely to be hunted out of speculation.
Today, the US will release housing starts for November and the EU will release its current account balance for October.
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Closing price of the previous business day High price since the beginning of the year Low price since the beginning of the year
Nikkei Average 27237.64 29388.16 24681.74
-289.48 2022/1/5 2022/3/9
Chicago Nikkei Stock Average Futures 27170 (Yen denominated)
