Selling may lead the Tokyo stock market on the 26th, against the backdrop of the yen-denominated settlement value for Chicago Nikkei futures, but the market is expected to limit declines, supported by individual factors such as FANUC's upward earnings revision and share buyback.
The Nikkei Average is expected to trade within a range calculated while monitoring futures movements on the 26th. The forecast range is ¥62,300 to ¥63,000, while the closing price on the 23rd was ¥62,693.16. FANUC's upward revision to its full-year earnings forecast and announcement of a share buyback, along with support for semiconductor stocks following a rebound in the SOX Index, could help underpin the market. In foreign exchange, the dollar is expected to move narrowly in the upper ¥156 range and the euro in the mid-¥175 range.
The market is also expected to be influenced by movements in U.S. markets. FANUC ADRs traded higher, while NIDEC and Sega Sammy Holdings ADRs were lower. The release schedule for domestic and overseas economic indicators and events is also expected to be watched as a market factor.