Views have shifted toward crude oil prices having peaked, while expectations for Japanese stocks to bottom are being brought forward. Expectations are spreading that conditions will improve next year, and the market closed sharply higher on 25 September.
Crude oil prices appear to have peaked, prompting a growing number of market participants to bring forward their expectations for when the market will bottom. Views that the market has exhausted its negative factors are beginning to seem realistic sooner than previously expected. This is strengthening expectations for an improved outlook next year.
The Nikkei 225 rose ¥850 from the previous day to close at ¥66,364. Alongside movements in crude oil, the market as a whole, including resource-related and defense-related stocks, is being seen as showing underlying resilience.
Movements in crude oil and defense stocks have drawn attention to the possibility of a nearby ceasefire agreement, prompting views that stability in energy markets is supporting the stock market. No definitive statements have been made about specific policies or the timing of events, but market reactions against the backdrop of the ceasefire outlook are being observed.
Some market participants share the expectation that next year will be a good one, and views have been presented that a turning point for the market could arrive with the end of the quarter as a starting point.