The Nikkei Stock Average is expected to move toward a recovery to ¥70,000 this week, while ¥160 to the US dollar is likely to be watched as a psychological threshold for the yen. The rise may be supported by funds spreading to stocks beyond AI and semiconductor names.
For the week of 17-21 August, the Nikkei Stock Average is expected to recover to the ¥70,000 range for the first time in around one and a half months. Following the April-June 2026 earnings announcements by listed companies, buying is expected to broaden to stocks beyond AI and semiconductor-related names. With concern over currency-market intervention lingering, the yen is expected to continue moving around ¥160 to the US dollar.
The Cabinet Office is scheduled to release its preliminary estimate of GDP for the April-June quarter on the 17th. Most market participants expect personal consumption and capital investment to remain firm, resulting in positive growth for the third consecutive quarter. Although worsening conditions in the Middle East have driven up crude oil prices, government gasoline subsidies may have eased the impact.