Against the backdrop of Japan's Silver Week holiday schedule, the overseas market reaction this week is likely to emerge largely on the 24th-25th. The U.S.-China summit could be the biggest market event, while close attention will also be needed on movements in crude oil prices and long-term interest rates.
As Japan will have a 3-day Silver Week holiday this week, the impact of overseas markets in the first half of the week is expected to be reflected in the Nikkei 225 on the 24th-25th. The yen is also said to remain volatile, with expectations regarding the Bank of Japan's monetary policy and possible foreign exchange intervention cited as market factors.
The U.S.-China summit scheduled for the 24th is the biggest event. Depending on the outcome of discussions on AI, trade and tariffs, investment and other issues, the effects could spread across the broader market.
Movements in crude oil prices and the outlook for long-term interest rates have been cited as factors that could weigh on the stock market. In particular, some market participants say attention is needed on movements in long-term interest rates around key levels in the 3% and 5% ranges.
Meanwhile, amid expectations of foreign exchange intervention by the authorities and fluctuations in the yen, caution in the foreign exchange market is expected to persist. Multiple factors are expected to influence markets this week, including concerns over AI safety.