Tokyo Stock Market Expected to Face Challenges Following US Bank Downgrade
TOKYO (Reuters) – The Tokyo stock market is anticipated to face a challenging day after Moody’s downgraded the US bank rating, causing the three major indexes to plummet during the previous trading session. As a result, the aggressive buying momentum in the Tokyo market is likely to be halted. However, the market could find support from individual stocks that have announced positive financial results, as the earnings announcement season nears its end.
The Nikkei Stock Average is expected to trade within a range of 32,200 yen to 32,500 yen.
Moody’s downgrade of US banks triggered a broad sell-off in the US market yesterday, renewing concerns about the health of American banks and the overall economy. The credit ratings of 10 small and medium-sized US banks were downgraded individually, while reviews were conducted on larger banks such as Bank of New York Mellon (BNY Mellon) and Truist Financial. Consequently, the S&P 500 bank stock index experienced a 1.1% decline, and the KBW regional bank stock index dropped 1.4%.
Today, the Tokyo market is expected to benefit from yen depreciation and buying interest in companies that have reported positive financial results. However, the previous day’s decline in US stocks is likely to weigh on investor sentiment.
Takuro Hayashi, head of the investment information center at Iwai Cosmo Securities, noted, “Due to the publication of the consumer price index (CPI) in the United States and the three-day holiday in Japan, we do not anticipate significant market movement.”
Given the Nikkei Stock Average’s three consecutive days of gains, profit-taking selling is expected. This is driven by the combination of healthy earnings and the weakened yen.
Apart from Japan’s July money stock announcement today, major companies such as Sony Group, Honda, Sompo Holdings, and NTT are scheduled to release their financial results. China will also publish its CPI and Producer Price Index (PPI) for July. Additionally, US entertainment giant Walt Disney is set to announce its financial results.
Closing price of the previous business day:
– Nikkei Average: 32,377.29
– High price since the beginning of the year: 33,772.89
– Low price since the beginning of the year: 25,661.89
+122.73 2023/6/19 2023/1/4
Chicago Nikkei Stock Average Futures: 32,310 (Yen denominated)
TOKYO (Reuters) – The Tokyo stock market today is expected to be in a row. In the US market the day before, Moody’s downgraded the US bank rating, and the three major indexes fell back to close, so it is likely that aggressive buying in the Tokyo market will be stopped. On the other hand, as the financial results announcement season is nearing its end, it is believed that individual stocks that have announced good financial results will support the market.
The expected range for the Nikkei Stock Average is 32,200 yen to 32,500 yen.
The US market sold off yesterday broadly on renewed concerns about the health of US banks and the economy after Moody’s downgraded US banks. Moody’s downgraded the credit ratings of 10 small and medium-sized US banks one by one, and reviewed some large banks, including Bank of New York Mellon (BNY Mellon) and Truist Financial, for their announced downgrades. The S&P 500 bank stock index fell 1.1% and the KBW regional bank stock index fell 1.4% as a result.
The Tokyo market today is expected to be supported by yen depreciation and buying of companies that have announced good financial results, while the previous day’s decline in US stocks is expected to weigh on investor sentiment.
Takuro Hayashi, head of the investment information center at Iwai Cosmo Securities, said, “Based on the publication of the consumer price index (CPI) in the United States and the three-day holiday in Japan, we do not anticipate much movement.” Ta.
As the Nikkei Stock Average has been rising for three consecutive days, it is expected that there will be selling in order to take profits. earnings and the weak yen.
In addition to the July money stock announcement in Japan today, Sony Group, Honda, Sompo Holdings, NTT, etc. are scheduled to announce their financial results. China will release its CPI and Producer Price Index (PPI) for July. In the United States, the entertainment giant Walt Disney is due to announce its financial results.
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 32377.29 33772.89 25661.89
+122.73 2023/6/19 2023/1/4
Chicago Nikkei Stock Average Futures 32310 (Yen denominated)
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