Amid strong caution in the Japanese equities market, reports indicate that stocks with strong earnings in the electrical equipment, automotive and financial sectors are gaining recognition following developments in US corporate earnings and next week's events. Attention next week will focus on the G20 Finance Ministers and Central Bank Governors Meeting and the release of the US employment report.
In the US market on 27 August, AI- and semiconductor-related stocks, including chipmaker Nvidia, were bought, while gains in the Dow Jones Industrial Average and Nasdaq Composite were limited.
In the Tokyo market on 28 August, the Nikkei 225 at one point rose more than ¥700, but caution spread ahead of the Jackson Hole meeting that evening, and the afternoon session's gains narrowed by the close.
The Tokyo market may react sensitively next week to the outlook for interest-rate hikes by the Bank of Japan and interest-rate trends in major countries. The Nikkei 225 is expected to trade in a range of approximately ¥65,000–¥67,300.
Market participants expect stocks with strong earnings to gain recognition, driven by corporate results in the electrical equipment, automotive and financial sectors.
The G20 Finance Ministers and Central Bank Governors Meeting will be held from 31 August to 1 September, while the release of the US August employment report is also scheduled for around the same time, suggesting that caution is likely to persist next week.