Nikkei 225 futures are expected to trade without a clear direction this week, with short-term trading centered on U.S. and Japanese monetary policy decisions, earnings from major companies and oil prices.
Nikkei 225 futures are expected to see volatile trading this week in response to monetary policy decisions in Japan and the United States, earnings from major technology companies and oil price movements. With the U.S. midterm elections approaching, it is likely to be difficult to build up aggressive positions, and trading is expected to focus largely on the short term.
The Federal Open Market Committee (FOMC) is expected to leave its policy rate unchanged on 27-28 October, while the key issue will be whether FRB Chair Warsh signals a stance favoring further rate hikes at the press conference. The Bank of Japan's policy meeting is scheduled for 29-30 October, with rates expected to remain unchanged, and the market will be watching the reaction in foreign exchange and interest rates.
Oil prices have risen again, with WTI moving into the $100 range and reaching the $103 range on the 23rd. The possibility that higher oil prices could feed through to long-term interest rates, due to the U.S. president's China policy and conditions in the Middle East, is cited as a risk factor.
AI- and semiconductor-related stocks are susceptible to the impact of earnings and investment trends, and investor interest is expected to shift depending on the market's reaction to U.S. corporate earnings. Advantest and Kioxia are among the companies due to report this week, making the market reaction to earnings a key focus.