The Nikkei Average rose more than ¥1,000 at one point on 14 August, reaching the ¥69,000 range. A break above ¥70,000 is expected to be the key focus next week.
The PPI data following the US July CPI also confirmed a slowdown in inflation, reducing expectations of an early rate hike by the Federal Reserve. As US interest rates declined, AI and semiconductor-related stocks were bought in the US market, with the gains spreading to the Japanese market.
In the Tokyo market, Advantest, SoftBank Group and Kioxia Holdings led the advance, sending the Nikkei Average into the ¥69,000 range. Whether it can break through the ¥70,000 psychological threshold will be the focus next week.
The expected range for the Nikkei Average next week is approximately ¥67,500 on the downside to ¥71,500 on the upside, with the key question being whether a break above ¥70,000 will come within reach.
The Nikkei Average is expected to be driven by the performance of AI and semiconductor-related stocks, while the US economy and interest rate trends remain in focus.