Nikkei 225 futures are expected to seek a short-term rebound this week ahead of the US midterm elections, while investors assess the release of US economic indicators and movements in AI-related stocks.
Nikkei 225 futures are likely to be affected this week by speculative trading ahead of key events including the US midterm elections and the US employment report. After confirming that semiconductor and AI-related stocks have found a floor, market movements in the second half of the week are expected to reflect earnings announcements and economic data releases.
US midterm election voting and counting will take place on 3 November, with counting progressing on 4 November Japan time. There is a possibility that speculative funds will flow into the futures market, and concerns are growing that uncertainty over regulation of AI-related businesses and fiscal and interest-rate trends could increase depending on the election results.
In the oil market, concerns over higher oil prices have intensified amid tensions surrounding Iran and reports of tanker damage, with WTI briefly reaching the $104 level. This is likely to heighten expectations for higher US long-term interest rates, and its potential impact on the broader market has been noted.