Tokyo stocks opened lower on the 14th, with the Nikkei Stock Average starting at ¥63,659, down ¥351 from the previous day. In contrast to gains in European and U.S. stocks, risk aversion spread across the domestic market. Concern over a slowdown in AI development investment weighed on major stocks. With policy meetings by the Bank of Japan, the Federal Reserve and the People's Bank of China expected to follow in succession, attention is also turning to long-term interest rates and the dollar-yen exchange rate.
Tokyo stocks opened lower on the 14th, with the Nikkei Stock Average starting at ¥63,659, down ¥351 from the previous day. Despite gains in European and U.S. stocks, caution spread across the Japanese market, while concern over a slowdown in AI development investment spread to major stocks.
Although gains in European and U.S. stocks continued, expectations for short covering failed to build sufficiently in Tokyo, limiting the momentum behind buybacks. In individual stocks, investors continued to assess factors affecting investment decisions.
Policy meetings by the Japanese, U.S. and Chinese monetary authorities are expected to follow in succession this week. The results of each meeting and market expectations surrounding the central bank governors' press conferences could make it more difficult for investors to gauge market direction. Movements in long-term interest rates and the dollar-yen exchange rate will also be key points to watch.
In addition, movements in South Korea's KOSPI and Taiwan's Weighted Index could affect the direction of Japanese stocks.