The Nikkei average is expected to open cautiously on 26 October, pressured by declines in U.S. stocks and higher oil prices, while monetary-policy events in Japan and the U.S. and earnings announcements from major companies are scheduled for this week.
Japanese stocks are expected to open cautiously on Monday, 26 October, following declines in U.S. stocks and higher oil prices. Against the backdrop of turmoil in U.S. markets at the end of last week, the focus is on whether the Nikkei average can hold above ¥62,000. This week brings monetary-policy meetings in Japan and the U.S., as well as earnings reports from major IT and semiconductor-related companies, with investors focused on results and policy developments.
All three major U.S. stock indexes declined. The Dow fell $652.82, the NASDAQ fell 0.21%, and the S&P 500 fell 0.52%, with selling spreading across the market. The reported factors behind the declines include higher oil prices, movements in long-term U.S. Treasury yields, and concern over AI-related investment.
In foreign exchange markets, the dollar was reportedly trading at approximately ¥156.84 against the yen. Continued yen weakness could affect the outlook for exporters, while a stronger yen could affect the outlook for domestic-demand businesses by reducing import costs.
Key points for the week include U.S. interest-rate policy, trends in AI-related stocks, the profitability of AI-related capital expenditure, and the policy stances emerging from monetary-policy meetings, including those of the Bank of Japan and the FOMC. Market participants are expected to assess Japanese and U.S. policy developments together with corporate earnings results.