The Nikkei 225 fell sharply at times in Tokyo last week, but a lack of market catalysts is likely to strengthen the wait-and-see mood this week. With major events including the FOMC scheduled for next week, market attention is likely to shift to the direction of US economic data.
The Nikkei 225 fell sharply from the previous weekend, ending the week at ¥65,020.94. Selling led the market early in the week, with the index declining for 4 straight sessions through the 3rd.
In a speech, Fed Governor Waller pointed to signs of slowing inflation, prompting views that, depending on upcoming data, the FOMC meeting on 15–16 could focus on keeping the policy rate unchanged.
Tensions in the Middle East, rising oil prices and movements in US long-term interest rates contributed to stronger risk aversion, while funds flowed into AI- and semiconductor-related stocks in Tokyo.
CPI and PPI releases are scheduled for this week, and the market’s direction could change significantly depending on the data. Readers seeking to gauge market developments ahead of the FOMC are watching closely.