Japanese stocks are expected to face continued upside pressure this week, with the Jackson Hole symposium and NVIDIA's earnings report the market's key focus. Attention is also turning to movements in US long-term interest rates and fiscal developments.
The Nikkei Average fell approximately 3.9% this week from the previous week's close, with rising US interest rates viewed as a source of concern. Uncertainty surrounding the situation in the Middle East and trends in crude oil prices are also weighing on the market.
The US Treasury announced its decision to double buybacks of long-term Treasuries to a maximum of $4 billion. The market views the intervention as a means of containing interest rate movements while assessing its relationship with widening fiscal deficits and continued Treasury issuance.
Next week, earnings from NVIDIA, a global AI semiconductor maker, are due to be announced, putting the company's performance and outlook in the market spotlight. In Japanese equities, Advantest's valuation is being discussed as a bullish factor, while fluctuations in demand from AI data centers are also a key focus of discussion.
In addition, a semiconductor technology symposium known as Hot Chips will be held at Stanford University in the US on 23-25, and related news could weigh on the market. Among economic indicators, the US July PCE deflator is scheduled for release on 26, while Tokyo metropolitan-area CPI is due on 28.