The week from late September to early October is expected to see continued dollar strength, with the yen potentially testing ¥160 to the dollar again. The U.S. employment report due on 2 October will be the focus.
The week of 28 September to 2 October is expected to see persistent dollar strength, with the yen likely to test lower levels. If the resilience of the U.S. economy comes into focus, the yen could again test ¥160 to the dollar, while attention will center on the U.S. employment report due on 2 October. Concerns over delays to Bank of Japan rate hikes are likely to persist, and domestic long-term yields may still have room to rise.
As for the outlook for the stock market, the Nikkei Stock Average is expected to remain firm, led by AI and semiconductor-related stocks. In the short term, stock selection may influence market movements, and volatility could increase depending on developments in the first half of the week.