In the Tokyo stock market on the 26th, selling prompted by weaker US stocks is expected to compete with buying based on the perceived undervaluation of Japanese stocks, leaving the Nikkei 225 likely to trade around the previous weekend’s closing level.
On the 26th, the Nikkei 225 is expected to move between periods when selling takes the lead against the backdrop of weaker US stocks and periods when buying based on the perceived undervaluation of Japanese stocks competes with selling. Market participants are expected to assess the direction of trading while watching the morning session.
The Nikkei 225 is expected to trade around the previous weekend’s closing level, with short-term movements likely to centre on this level.