The yen is expected to move this week depending on the US jobs report. The Nikkei 225 is expected to remain under pressure on the upside, while movements in AI and semiconductor-related stocks could test the downside.
The main focus this week is the release of the US jobs report, which could affect the yen depending on whether expectations of a rate hike by the FRB strengthen. The Nikkei 225 is likely to remain in a wait-and-see mode, while movements in AI and semiconductor-related stocks could lead the market to test its downside.
The Ministry of Finance will close submissions for FY2027 budget requests by 31 August. With the administration prioritizing growth and investment in crisis management, the total is expected to reach a record high, making how fiscal discipline can be maintained a key market focus.
The yen could face stronger depreciation pressure depending on the US jobs report, and close attention will be paid to shifts between periods of yen appreciation and depreciation. AI-related and semiconductor stocks are also expected to remain under close watch.