Market volatility has increased around the US midterm elections, and volatile trading is expected over the weekend. The Nikkei Average is in a sharp decline, the dollar is being bought broadly in the foreign-exchange market, and the upcoming US employment report will be a market focus.
Market volatility has increased this week around the US midterm elections, with views divided over the market impact of the negative implications of curbing AI investment and the positive implications of policy restraints. The market has continued to alternate between positive and negative reactions from day to day.
Following the previous day's decline in US equities, the Nikkei Average fell more than ¥4,000 at one point in Tokyo, creating a volatile market that saw it break below the ¥60,000 level. NY crude oil futures were also bought on a rebound, and market instability continues.
The dollar was broadly bought in the foreign-exchange market. Euro-dollar fell below the 1.12 level, while dollar-yen fluctuated mainly in the ¥157 range. Yen-buying pressure associated with risk aversion has also intersected with other forces affecting the yen.
Unstable conditions are expected to continue in overseas markets, and the US employment report is expected to be the main focus of the market's reaction. October's US employment report is expected to show NFP growth of 70,000, an unemployment rate of 4.2%, average hourly earnings up 0.3% month on month and 2.9% year on year. The report is scheduled for release at 22:30 Japan time after the US switches to standard time.