Japanese stocks are expected to see a sharp further decline on the 2nd, with turmoil in US equities likely to unsettle investor sentiment and intensify headwinds for AI- and semiconductor-related stocks.
Expectations are growing that the outlook for Japanese stocks, including the Nikkei on the 2nd, will come under sharply stronger downward pressure, with turmoil in US equity markets expected to persist. AI-related and semiconductor stocks are seen as particularly vulnerable.
As volatility in US equities rises, investors are expected to become more cautious, while uncertainty over corporate earnings and supply-demand conditions is reported to be weighing on market moves.