Tokyo's stock market on the 24th is expected to rise, led by AI and semiconductor-related stocks, as it prices in the previous day's gains in US stocks. Long-term yields may also rise at times following the strong US PMI results.
European stocks traded in negative territory the previous day, while the NY Dow and Nasdaq Composite fell in US trading. Meanwhile, the US purchasing managers' indices, or PMIs, came in above market expectations at 57.0 for manufacturing and 58.7 for services, while US long-term yields rose on inflation concerns. This weighed on the stock market.
The Japanese market is expected to rise, led by AI and semiconductor-related stocks, as it prices in the gains made by US stocks, particularly technology shares, during the Silver Week holiday period. During the holiday period, the Nasdaq renewed its all-time high for the first time in about three and a half months.
Although the outlook for the Middle East remains uncertain, excessive caution showed signs of easing. On the 22nd, US and Iranian delegations held direct talks in New York and concluded a memorandum aimed at ending the fighting. WTI crude rose above the $100-per-barrel threshold earlier this month, but recently fell below $90 at times.
In US trading on the 23rd, the NY Dow fell $352 from the previous business day, while the Nasdaq dropped 308 points. In Japan, announcements scheduled for today include August sales at food supermarkets and major convenience stores. Overseas, attention will focus on the release of indicators in Germany and elsewhere, as well as a meeting between the US and Chinese leaders.