The stock market outlook for the 12th is expected to be shaped by a wait-and-see mood among investors ahead of the US CPI release, as views on the strength of the domestic and overseas economies diverge.
Views on the domestic and overseas economies are divided between optimism and pessimism across the market, while investors are becoming more cautious ahead of the release of the US Consumer Price Index (CPI). With market participants assessing developments in Japan and the United States, major market moves are not expected, and the market is likely to remain in a holding pattern pending further direction. The Japanese market could also be affected by US developments, and the outlook calls for the wait for market-moving cues to continue.
In terms of specific market moves, the Nikkei Average stood at ¥66,970.22, up ¥1,363.51 from the previous day. The Dow Jones Industrial Average in the New York stock market closed at $53,791.85, down 184.13 points, while the Shanghai Composite stood at 3,934.09 points, down 32.50. In the foreign exchange market, USD/JPY was trading at ¥159.27. These moves suggest that the market has yet to establish a clear direction as investors await the CPI data.
Accordingly, the equity market may continue to hold near current levels ahead of the US CPI release. However, the data could trigger sharp market moves depending on the figures, making movements in the major indices and foreign-exchange rates key points of focus.