The yen is expected to have limited downside this week as concerns about intervention intensify against the backdrop of the US-Japan interest rate differential. Funds are likely to flow into AI-related stocks, supporting the Nikkei's firm performance.
During the week of 21-25 September, leaders from various countries are scheduled to hold bilateral meetings alongside the UN General Assembly, which may ease concerns about a worsening situation in the Middle East. In currency markets, yen selling is likely as investors focus on the US-Japan interest rate differential, while downside is expected to be limited by concerns about currency intervention. The stock market is expected to trade for only 2 days, on 24-25 September. Funds are likely to flow into AI-related stocks, and the Nikkei Stock Average is expected to remain firm.
The UN General Debate begins on 22 September, with leaders and other representatives from 193 countries scheduled to deliver speeches. As the military conflict between the US and Iran and Russia's invasion of Ukraine continue, major powers may assert their own interests. Against a backdrop of wavering faith in multilateralism, the General Debate will serve as a forum for exploring ways to restore confidence in international cooperation.