In the Tokyo market on the 14th, buying is expected to recover the previous day’s losses in semiconductor stocks amid conflicting market views, keeping the downside firm. Caution is likely to remain over the market’s overall direction as investors assess U.S. stock trends and the U.S. CPI due tonight.
In the previous day’s European and U.S. markets, semiconductor-related stocks fell and weighed on the indices despite a mixed performance overall. Applied Materials fell 6.7% and Micron Technology fell 3.6% amid heavy selling. Japanese stocks also came under selling pressure at one point, although buying-back pressure is expected to emerge after the sharp decline.
Buying-back activity is expected to support the downside in the Nikkei 225, but gains are also being held back as investors await U.S. stock movements and the release of the September U.S. CPI. Among financial stocks, Citigroup’s sharp decline and Goldman Sachs’ weakening after rising in the morning stood out, and the broader market may remain under pressure.
In the U.S. market on the 13th, the Dow fell more than approximately $180 from the previous day, while the Nasdaq Composite fell approximately 41 points in a modest decline. The semiconductor sector is expected to remain in an environment of strong headwinds globally.
Today’s schedule includes the release of the September U.S. consumer price index (CPI), which is expected to be a factor determining the market’s direction. Other releases are scheduled, including money stock and investment trust data, while U.S. and Chinese economic indicators are likely to provide market clues.
Corporate earnings announcements, which will accelerate from late this month, are expected to be strong, and buying is expected to remain firm in stocks with strong earnings prospects.