The Tokyo market is expected to remain heavy on the upside on the 29th, with the Nikkei 225 expected to trade in a range of approximately ¥65,200–66,000. Attention is focused on whether the approximately ¥300 September dividend ex-dividend adjustment will be priced in during the day, while the impact of weaker U.S. stocks and currency movements will also warrant attention.
The Nikkei 225, which closed at the day's low on the previous day, is expected to look for room for a rebound, although a lack of buying catalysts and the risk of profit-taking sales awaiting a rebound are likely to keep the market subdued. The dollar is expected to trade in the low ¥157 range and the euro in the ¥178 range, both in a narrow range.
On the 28th, Rakuten Group, Nintendo and Mitsubishi UFJ were among the ADRs trading below their closing prices on a yen-converted basis. Attention is focused on whether the tone of major stocks will provide support. The settlement price of Chicago Nikkei futures was up ¥125 from the previous day.
The domestic economic indicator schedule for the 29th includes a 40-year Japanese government bond auction and the IPO of Classys Chemical, while the release of U.S. indicators during overseas trading hours could affect market direction.
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