Japanese markets are expected to see buying lead, reflecting gains in U.S. semiconductor and AI-related stocks. Against the backdrop of developments in U.S. markets on the 4th and the U.S. employment report, the Tokyo market is expected to trade with attention focused on the upper end of its range.
In U.S. markets on the 4th, the SOX Index gained more than 3%, supported by a rebound in semiconductor and AI-related stocks. In response, buying is expected to lead at the open in Japanese equities. The Nikkei 225 is expected to trade around the previous day's closing level, with the market likely to focus on identifying the resistance on the upside and the extent of downside support.
In U.S. markets on the 4th, there was a pause in the rise in long-term Treasury yields, providing a buying catalyst for technology stocks. Meanwhile, in the night session, Nikkei 225 futures were watched in the ¥66,000 range, at times reaching levels more than ¥600 above the psychological threshold.
The August U.S. employment report showed a larger-than-expected increase in nonfarm payrolls. This heightened expectations of an early rate hike in the United States, and long-term Treasury yields continued to trend higher. The yen weakened against the dollar, which could also affect interest-rate trends in the domestic market.
Potential upside levels include the psychologically significant ¥66,000 mark, the 25-day moving average at ¥66,067, ¥67,000 and ¥68,000. On the downside, levels such as ¥63,772, ¥63,000, ¥62,000 and ¥60,448 have been cited. Caution is considered necessary regarding short-term trading activity on days when overseas markets are closed.