The Nikkei average is expected to move back and forth around the previous day's close in Tokyo trading on the 28th, with the index likely to range roughly between 65,600 and 66,600. Higher U.S. crude oil prices and rising U.S. interest rates, driven by uncertainty over the situation in the Middle East, are expected to weigh on the market, while investors are likely to adopt an increasingly wait-and-see stance ahead of the Jackson Hole meeting. Gains in U.S. stocks on the 27th could also provide psychological support.
In Tokyo trading on the 28th, the Nikkei average is expected to move back and forth around the previous day's close, fluctuating within a range of roughly 65,600–66,600. The market is expected to lack a clear direction after trading begins, leaving uncertainty around the closing level.
The backdrop is continued strength in U.S. crude oil prices due to uncertainty over the situation in the Middle East, along with persistent upward pressure on U.S. interest rates. These factors are expected to contribute to higher short-term market volatility.
With the Jackson Hole meeting approaching, market participants are expected to adopt a more pronounced wait-and-see stance. At the same time, gains in U.S. stocks on the 27th could provide psychological support. The Nikkei average is likely to continue moving little changed around the previous day's close.