US stocks were mixed, with the Nasdaq falling more than 2% throughout the session. The Japanese market is expected to remain soft, while the yen strengthened and the dollar weakened at times.
The Tokyo market is expected to trend lower, while US stocks were mixed. The Dow Jones Industrial Average ended slightly higher, whereas selling spread across the Nasdaq and S&P 500, with technology stocks standing out for their declines.
The Nasdaq remained weak throughout the session, falling more than 2%. Funds flowed into defensive stocks, while dip-buying in AI-related stocks was limited, and investors appeared wary of the sharp decline despite the fall in long-term yields. The yen strengthened and the dollar weakened, with USD/JPY trading around ¥156.60.
The Nikkei 225 is expected to remain soft, with the projected intraday range set at ¥61,800 to ¥63,300. Some believe that the decline in US stocks has already been priced in to a certain extent, but attention was advised to movements in defensive and cyclical stocks.
CME Nikkei 225 futures, both yen- and dollar-denominated, traded below the previous day's close, and there were periods when investors' risk-averse stance intensified.