The Nikkei is expected to trade nervously in the Tokyo stock market this week, with hawkish remarks by the US Federal Reserve chair expected to weigh on the market at the start of the week. Day-to-day rotation into different stocks is also seen supporting the market.
The Nikkei is expected to move nervously this week as the outlook for the Tokyo stock market. Market participants may respond more sensitively to the impact of domestic and overseas news than to economic indicators and corporate earnings.
At the start of the week, hawkish remarks by the chair of the US Federal Reserve Board (FRB) are expected to weigh on the market, and concerns about interest-rate trends are reportedly intensifying.
The market is also seen being supported by day-to-day rotation into different stocks, with funds expected to flow at times into thematic stocks and stocks driven by short-term catalysts.