Selling driven by concerns over a slowdown in AI-related investment is expected to prevail in Tokyo trading on the 15th, particularly among semiconductor stocks, with the Nikkei 225 forecast to remain soft. Currency markets are expected to remain rangebound, while attention will also focus on major economic indicators and developments at the US FOMC.
Tokyo trading on the 15th is expected to remain soft, with the projected range for the Nikkei 225 set at ¥62,900 to ¥63,800. Selling driven by concerns over a slowdown in AI-related investment is expected to be the main factor, resulting in generally weak price action.
Meanwhile, funds are expected to shift from AI-related stocks into domestic-demand, entertainment-related and defensive stocks, potentially increasing the number of advancers across the Prime Market.
The dollar is in the first half of the ¥154 range and the euro in the first half of the ¥178 range, with little movement. ADRs were generally lower than the previous day in yen terms, with Furukawa Electric, Sumitomo Electric Industries and Fujikura among those posting declines. The yen-denominated settlement price for Chicago Nikkei 225 futures was ¥63,120, down ¥230.
The domestic and overseas indicators and events on the schedule include the July Tertiary Industry Activity Index and a 20-year Japanese government bond auction at 1:30 p.m. Overseas, the focus will be on China’s retail sales, industrial production and fixed asset investment, Germany’s ZEW Economic Sentiment Index, the New York Fed Empire State Manufacturing Index and developments related to the FOMC.