Japan's market next week is expected to be particularly susceptible to movements in oil prices, long-term interest rates, and European and US markets due to the schedule around the market holidays, with the Nikkei 225 expected to trade in a range of ¥63,000 to ¥67,000.
Japanese equities ended the week with the Nikkei 225 recovering to the ¥65,000 range as markets focused on the sense of relief after passing through the FOMC and Bank of Japan policy meetings. Rising oil prices and long-term interest rates were headwinds at times, but buying also emerged after the US monetary policy decision came in as expected.
The market will be closed from 21 to 23 September for Silver Week, leaving limited trading sessions next week. As a result, markets are expected to be particularly vulnerable to movements in oil prices, interest rates, and European and US markets during the holiday period. Depending on developments in the futures market, the market could open sharply higher or lower after the break.
Economic events scheduled for next week include releases of the Richmond Fed Manufacturing Index, the US flash Composite PMI, and the final reading of the University of Michigan Consumer Sentiment Index. In Japan, attention will also focus on developments surrounding the IPO of レイヤード. Among individual stocks, EXEDY, GUNZE, and VT HOLDINGS are the 3 stocks highlighted as being in focus.
As next week's key events and stock developments could influence the market's direction throughout the holiday period, this is likely to be a period requiring a comprehensive assessment of movements in oil prices, interest rates, and overseas markets.