The 13th is expected to be a session for assessing the resilience of semiconductor stocks in the Japanese market. Developments in the US market and futures movements will be the focus.
Selling is expected to dominate the Japanese stock market on the 13th, with the session likely to focus on assessing the resilience of semiconductor stocks. In the US market the previous day, the NY Dow rose while the Nasdaq fell, with higher oil prices weighing on sentiment. Growing expectations for earnings and easing expectations for an early rate hike supported buying interest, while semiconductor stocks saw notable selling.
The Nikkei average is expected to track movements in Chicago Nikkei 225 futures. Futures were slightly higher than the Osaka close when overnight trading began, but fell toward the end of the session, at one point dropping below ¥68,740, the +1σ level. Selling moves led by futures are expected, raising concern that such activity could affect semiconductor-related stocks.
The decline in the SOX Index was pronounced in the US market, and selling is expected to weigh on Advantest, Kioxia Holdings, SoftBank Group and Tokyo Electron. Against this backdrop, declines in semiconductor stocks could spread to the futures market, while funds may also shift toward domestic-demand stocks, defense-related stocks and other theme stocks linked to security-related developments.
While US earnings announcements continue, uncertainty over interest rates, foreign exchange movements and the situation in the Middle East could cause higher oil prices to weigh on sentiment. With earnings announcements from major financial institutions such as Goldman Sachs due, overall fund flows are expected to shift across various market conditions.