Following turmoil in the U.S. stock market, Japanese stocks are expected to suffer another sharp decline, led by AI and semiconductor stocks, with the Nikkei 225 expected to fall below ¥63,000.
The risk-off trend is likely to continue in the Tokyo market on the 2nd, and the Nikkei 225 is expected to suffer another sharp decline. Mixed performance in European stocks is also having an effect, with the market carrying over the tone from Asian equities.
In the U.S. market, major stock indexes continued to fall, with the Nasdaq, which has a high weighting of technology stocks, standing out as losses widened.
Among individual stocks, Intel, which reported earnings the previous week, fell more than 30% at one point, spreading selling across the semiconductor sector. Advanced Micro Devices and SanDisk also fell, while the SOX index ended down 7.2%.
With the U.S. midterm elections scheduled for the 3rd this week, selling to unwind long positions is expected.
The release schedule includes October new-vehicle sales and the U.S. ISM manufacturing index. Apple earnings are also expected to attract market attention.