Crude oil surged amid turmoil in the Middle East, sending U.S. stocks lower. Following that trend, Tokyo stocks fell sharply on the 11th, led by AI and semiconductor shares, with the Nikkei 225 closing at 64,011.34. With monetary policy events in Japan and the United States scheduled for next week, the market's direction is expected to change depending on the outcome.
Tensions in the Middle East pushed up oil markets, keeping WTI crude oil futures above $100 a barrel. The Dow Jones Industrial Average and Nasdaq Composite have consequently declined in U.S. equity markets.
In Tokyo on the 11th, selling intensified, particularly in leading AI- and semiconductor-related stocks. The Nikkei 225 fell more than 2,000 points at one stage before narrowing its decline as short positions were unwound in the afternoon session. It closed at 64,011.34, down 1,259.61 points from the previous day.
Looking ahead to next week, the passage of monetary policy decision events in Japan and the United States could dispel some of the market's concerns. However, if WTI crude oil remains at elevated levels, it could also weigh on the market's upside. Attention is also focused on the Bank of Japan's interest-rate outlook and the content of its press conference.
The expected range for the Nikkei 225 is 63,200 to 65,300, while developments in theme stocks related to AI, semiconductors, financials and automobiles will be closely watched.