Domestic stocks next week will focus on the Jackson Hole symposium and Nvidia's earnings. The Nikkei Average ended 3.9% below the previous weekend's close.
The Nikkei Average was weighed down this week by rising Japanese and US long-term yields, uncertainty surrounding the Middle East and expectations of an additional Bank of Japan rate hike, ending at ¥66,016.36, down ¥2,697.44, or 3.9%, from the previous weekend. At one point early in the week, long-term yields approached levels not seen in approximately 30 years, but buying in AI and semiconductor-related stocks supported the market. Meanwhile, concerns about the situation in the Middle East resurfaced around midweek, and there were also periods when continued rises in long-term yields triggered selling in technology stocks.
Next week's biggest event will be the Jackson Hole symposium, with particular attention focused on the keynote speech scheduled for the 28th by Fed Chair Warsh. Some market participants expect the cautious stance toward forward guidance to continue, and the market's reaction could depend on the chair's remarks. In the US market, long-term yields and employment and retail indicators are likely to remain in focus. Along with trends in energy and diesel-related markets, they will be factors affecting overall risk sentiment.
Nvidia's earnings announcement is due on the 26th and is expected to have a significant impact on domestic AI and semiconductor-related stocks. There have been cases in which share prices fell despite strong earnings, so investors may again be conscious of the possibility that the catalysts have already been priced in. Marvell Technology is also scheduled to announce its earnings on the 27th, and investment trends among major cloud companies, including Salesforce's results on the 26th, will be closely watched. In Japan, Tokyo CPI will be released on the 28th and is expected to be closely watched as an indicator for assessing the Bank of Japan's decision on an additional rate hike in September.