The Tokyo market on the 9th is likely to open with a focus on whether the rebound in buybacks will continue. Following the sharp decline the previous day, expectations are growing that the Nikkei 225 could stage a technical rebound, helped by a recovery in US semiconductor shares.
The Nikkei 225 fell as much as ¥36,443 to ¥57,434.77 on the previous day, the 6th, but semiconductor shares recovered in the US market. Yen-denominated Nikkei 225 futures stood at ¥58,235, up ¥825 from the Osaka close, while the yen's move toward depreciation over the weekend has also provided support.
If buying continues to lead and the market can hold above the ¥57,500 level without breaking below it, the technical rebound is likely to retain momentum. On the other hand, selling pressure from investors waiting to sell into a recovery could increase around ¥59,000. The focus will be on whether buying spreads to high-priced stocks, including semiconductor shares.
On the 10th, Taiwan's TSMC monthly sales, SoftBank Group's earnings and the US October Consumer Price Index are due to be released. Attention is therefore required regarding developments in economic indicators and earnings information in Japan and overseas.