The Nikkei 225 is likely to test ¥70,000 at times this week, with its movements expected to depend on US employment data. Nikkei 225 futures may also trade above ¥70,000 in overnight trading on the Osaka Exchange.
The Nikkei 225 is expected to reach the ¥70,000 milestone at times from the 5th to the 9th, for the first time in around three months, with the outlook for US interest rates following the US employment report potentially affecting the market. The month-on-month increase in nonfarm payrolls in the September US employment report fell short of market expectations, while the unemployment rate rose. Against this backdrop, it has been reported that expectations for an early Fed rate hike have temporarily receded. Nikkei 225 futures traded above ¥70,000 at times in overnight trading on the Osaka Exchange. Conditions are expected to remain conducive to funds flowing into Japanese equities.
The extraordinary Diet session will be convened on the 5th, with a 69-day session scheduled to run through 12 December. As the first full-scale policy debate, it is expected to feature heated exchanges over a bill to cut the consumption tax on food products and a bill to reduce the number of seats in the House of Representatives.