Japanese stocks are expected to search for a buying opportunity on dips following the decline in US markets. Nikkei futures have remained on a downward trend, reflecting the performance of US markets on the 18th and the impact of higher oil prices and rising interest rates.
US markets fell sharply on the 18th, with the Dow down 116 points and the Nasdaq down 355 points. Uncertainty over the situation in the Middle East intensified, while rising oil prices and higher long-term US interest rates dampened investor sentiment. Against this backdrop, selling is expected to lead the Japanese market as well.
Market participants said in their outlook for the morning that selling is likely to lead in the Nikkei Stock Average before the daytime open, with the market expected to look for a floor near the 25-day and 75-day moving average lines. Nikkei futures opened the overnight session at ¥67,430 and fell to around ¥66,060 toward the close.
While higher oil prices and rising long-term US interest rates are weighing on the market, attention is also focused on semiconductor and AI-related stocks. The market is concerned that declines in these stocks could weigh on the Nikkei Stock Average.