Against the backdrop of falling US tech stocks, selling is expected to dominate during the afternoon session. The Nikkei 225 is expected to remain volatile in the upper ¥60,000s.
The Nikkei 225 stands at 65,266.67, down 1,033.77 from the previous day, while the TOPIX is at 4,031.04, down 15.13. Volatile trading is expected to be a key focus during the afternoon session. Profit-taking in semiconductor and AI-related stocks is expected to be particularly evident in stocks with a large impact on the indices.
Volatile trading in the ¥65,000 range is expected during the afternoon session, with expectations of US rate hikes, driven by rising long-term interest rates, likely to weigh on the market. Buying and selling are expected to continue to cross.
Meanwhile, individual stock selection based on earnings remains active, and some expect inflows into stocks with strong earnings to support the market. Funds may also shift into domestic-demand and defensive sectors.