In the Tokyo market on the 10th, the Nikkei is likely to move toward a recovery to the ¥60,000 range, with movements in the US market and TSMC's monthly sales in focus.
In the US market, stock indexes rose sharply the previous day, while the semiconductor-focused SOX index surged and ADRs of companies including Disco, Fujikura, Tokyo Electron and Advantest remained at high levels. The Japanese market is expected to maintain its buying momentum in response, although market participants have cautioned that profit-taking should also be watched for after the rapid, futures-led rise.
The Nikkei rebounded sharply on the 9th following the previous weekend's steep decline, closing at ¥58,775.50 for its first rise in 6 trading days. The intraday high reached ¥59,440.18, but the strength of selling into the rebound was also evident, and the market is expected to enter phases in which the gain narrows.
The market is closely watching the release of Taiwan-based TSMC's October sales. SoftBank Group's earnings announcement is also due after the close as an earnings-related development. In the US market, the October consumer price index (CPI) is scheduled to be released tonight, and attention is also expected to focus on developments in domestic and overseas inflation indicators.
Domestic economic indicators scheduled for release include the September household survey, the October Economy Watchers Survey, a government bond auction and the El Niño monitoring bulletin. Overseas releases are expected to include China's October trade balance, TSMC's preliminary figures, the US CPI and long-term government bond auction, and earnings announcements from European companies.