Tokyo Stock Market Anticipates Stalemate Ahead of Key Economic Events

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July 20, 2023
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TOKYO (Reuters) – The Tokyo stock market is poised for a strong stalemate in the Nikkei Stock Average today. Although immediate information remains scarce, there is a growing sense of anticipation regarding crucial economic events such as the upcoming US Federal Open Market Committee (FOMC) meeting and the Bank of Japan’s monetary policy meeting next week. Due to limited active participation, investors are expected to shift their focus towards individual material stocks and small to mid-cap stocks.

According to market experts, the expected trading range for the Nikkei Stock Average is projected to be between 32,700 yen to 33,000 yen.

Following a more than 400 yen surge the previous day, there is a likelihood of profit-taking today. Shingo Ide, Chief Equity Strategist at the NLI Research Institute, noted, “We are not in a situation where stocks are relentlessly climbing higher. Instead, the Tokyo stock market is expected to fluctuate within a range, closely monitoring foreign exchange rates and the performance of the three US stock futures indices, in a thinly traded market.”

In the US stock market, while attention was primarily on corporate financial results on the 19th, the Dow Jones Industrial Stocks 30 saw an eight consecutive days of gains. In contrast, the Philadelphia Semiconductor Index (SOX Index) experienced a decline of over 1%, which may not act favorably for Japanese stocks. Although the yen slightly depreciated against major currencies, ranging from 139.60 yen to 139.35 yen the previous day, experts believe the impact on the stock market will be limited.

Key upcoming events include the release of trade statistics for the first half of 2023 in June by the Ministry of Finance, as well as the announcements of Nidek’s and DISCO’s financial results. In the United States, the leading economic index (the Conference Board) will be released in June, along with the Federal Reserve Bank of Philadelphia’s Business Conditions Index in July.

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: 32,896.03 33,772.89 25,661.89

Today’s Change: +402.14 (June 19, 2023, since January 4, 2023)

Chicago Nikkei Stock Average Futures: 32,880 (Yen denominated)

TOKYO (Reuters) – The Tokyo stock market today is likely to see a strong stalemate in the Nikkei Stock Average. Although no information is immediately available, the exit mood is likely to strengthen in anticipation of important economic events such as the US Federal Open Market Committee (FOMC) and the Bank of Japan’s monetary policy meeting next week. The number of participants taking active positions is limited, and they are likely to focus on individual materials stocks and small and mid-cap stocks.

The expected range for the Nikkei Stock Average is 32,700 yen to 33,000 yen.

The Nikkei Stock Average rose more than 400 yen the day before, and today it is easy to sell to take profits because of the reaction. Shingo Ide, Chief Equity Strategist at the NLI Research Institute, said in the market, “It is not a situation where the stock is chasing higher prices. The Tokyo stock market today is likely to move up and down within a range with a sideways glance at foreign exchange and three US stock futures indices in a thinly traded market.

Although the US stock market on the 19th focused on corporate financial results, Dow Jones Industrial Stocks 30 rose 8 times in a row and finished. However, the Philadelphia Semiconductor Index (SOX Index) fell more than 1%, which is unlikely to be a tailwind for Japanese stocks. In the foreign exchange market, the Yen slightly depreciates from the level of yen 139.60 to the level of yen 139.35 at 3 pm the previous day, but the general opinion is that the impact on the stock market will be limited.

Major timetables include the release of trade statistics (Ministry of Finance) for the first half of 2023 in June, and the announcements of Nidek and DISCO financial results. In the United States, the leading economic index (the Conference Board) will be released in June, and the Federal Reserve Bank of Philadelphia’s Business Conditions Index will be released in July.

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 32896.03 33772.89 25661.89