Japanese equities are expected to see the Nikkei 225 test lower levels this week, with consolidation likely ahead of next week's FOMC meeting and the Bank of Japan's monetary policy meeting. Earnings from AI-related stocks will also be a focus for the market.
The Nikkei 225 closed last week at ¥65,324, down ¥3,706 from the previous Friday and marking its first weekly decline in 5 weeks. Nikkei 225 futures fell in overnight trading, pointing to a start led by selling this week. With monetary policy events in Japan and the US scheduled for next week, the market is expected to focus on establishing a base and finding a level at which share prices can settle.
The ¥65,000 range has previously served as both resistance and support, drawing attention to the current recovery trend. At the same time, the overnight close for Nikkei 225 futures was ¥63,630, below the recent weekly low of ¥64,092, suggesting renewed signs of downside risk this week.