The Tokyo market on 11 November is expected to face pressure from lower U.S. stocks and a decline in Nikkei futures, while investors remain wary of a correction after the previous day's sharp rebound. The focus will be on the battle to hold the Nikkei 225 above ¥60,000.
As of 6 a.m. on the 11th, Nikkei 225 futures were trading weakly at ¥60,060, down ¥330 from the previous day, keeping attention focused on profit-taking selling immediately after the market opens and on the ¥60,000 level.
On the previous day, the 10th, the Nikkei 225 closed at ¥60,459.58, up ¥1,684.08 from the previous day, recovering to the ¥60,000 level on a closing-price basis. In the afternoon session, it traded around ¥60,000, narrowing its gains toward the close while remaining near its highs.
All three major U.S. indexes traded weakly. The Dow Jones Industrial Average closed down about $157, the Nasdaq down about 187 points and the S&P 500 down about 29 points. The semiconductor-focused SOX Index also fell.
USD/JPY was trading around the mid-¥158 range. While this could support the earnings of exporters, the market will need to assess its impact on the broader market depending on movements after trading begins.