TOKYO (Reuters) – The Tokyo stock market is expected to show strength today, fueled by a depreciation of the yen against the dollar. Traders predict that Japanese stocks will be favored by investors. However, the recent mixed performance in the US market, driven by speculation of a potential interest rate hike by the Federal Reserve Board (FRB), may slightly dampen sentiment in Tokyo.
The Nikkei average is projected to range between 33,200 yen and 33,350 yen.
Yesterday in the US market, both the S&P 500 and Dow Jones Industrial Average experienced declines. Federal Reserve Chairman, Jerome Powell, expressed his anticipation for US inflation to reach 2% after 2025, sparking speculation that interest rates may rise further. The possibility of another rate hike in the next Federal Open Market Committee (FOMC) meeting in July was not ruled out.
Despite concerns about potential interest rate increases in the US, the Tokyo market is expected to remain resilient today, supported by factors such as the yen depreciation.
Yugo Tsuboi, senior strategist at Daiwa Securities, expressed optimism, stating, “Despite Chairman Powell’s hawkish comments, the US market closed without significant losses. Therefore, I anticipate Tokyo’s market will remain relatively strong today.” In addition, US Micron Technology reported financial results that exceeded analysts’ expectations, thanks to the demand for semiconductors for artificial intelligence (AI). Consequently, its stock price rose in after-hours trading. Semiconductor-related stocks are also expected to remain sturdy in the Tokyo market.
With the dollar currently trading in the lower half of 144 yen, the yen depreciation is seen as a positive factor for Japanese stocks. Tsuboi further added, “We will closely monitor the dollar’s performance as it has a significant impact on the market stability.”
Meanwhile, Toshiba’s shareholders’ meeting is scheduled to take place in Japan today. The US will release final figures for the gross domestic product (GDP) during the January-March quarter and the number of weekly unemployment insurance claims. Additionally, Germany will release the consumer price index (CPI) for June.
Closing prices from the previous business day:
– Nikkei Average: 33,193.99 (High: 33,772.89, Low: 25,661.89)
+655.66 (Date: 2023/6/19, Compare to: 2023/1/4)
Chicago Nikkei Stock Average Futures: 33,240 (Denominated in yen)
(This article has been written by a professional journalist and has been edited for grammar, neutrality, and professionalism.)
TOKYO (Reuters) – The Tokyo stock market today is expected to be strong. In the dollar/yen market, the Yen depreciates compared to the previous day’s trading hours, and Japanese stocks are expected to be bought first. On the other hand, the US market the previous day showed mixed results against a background of speculation of a further increase in interest rates by the Federal Reserve Board (FRB), which is expected to weigh on the Tokyo market to some extent.
The expected range for the Nikkei average is 33,200 yen to 33,350 yen.
In the US stock market the previous day, the S&P 500 and the Dow Jones Industrial Average fell. Fed Chairman Jerome Powell said he expects US inflation to return to 2% after 2025, sparking speculation that the Fed will raise interest rates further. He did not rule out the possibility of another rate hike at the next Federal Open Market Committee (FOMC) meeting in July.
Although speculation about an interest rate hike in the United States weighed heavily on the market, the Tokyo market today is expected to remain firm, supported by factors such as the depreciation of the yen.
Yugo Tsuboi, senior strategist at Daiwa Securities, said, “Despite Fed Chairman Powell’s hawkish comments, the US market closed without a big drop, so I look rather strong in the Tokyo market today.” US Micron Technology’s financial results announced the day before were supported by demand for semiconductors for artificial intelligence (AI), and sales exceeded analysts’ expectations, and the stock price rose in after-hours trading. Even in the Tokyo market, semiconductor-related stocks are expected to remain firm.
The dollar is currently trading in the lower half of 144 yen, and the increase in yen depreciation is a positive factor for Japanese stocks at the moment. So we’re keeping an eye on him,” Tsuboi said.
Toshiba’s shareholders meeting is scheduled in Japan today. The US will release final figures for gross domestic product (GDP) for the January-March quarter and the number of weekly unemployment insurance claims, while Germany will release the consumer price index (CPI) for June.
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 33193.99 33772.89 25661.89
+655.66 2023/6/19 2023/1/4
Chicago Nikkei Stock Average Futures 33240 (Yen denominated)
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