The Nikkei Average is expected to remain under pressure on the upside this week, with markets focused on developments following monetary policy decisions in Japan and the U.S. and the release of U.S. CPI data.
The Nikkei Average is expected to remain under pressure on the upside from 7 to 11 September, with rising expectations of U.S. rate hikes following the U.S. employment report likely to weigh on the market. Ahead of next week’s Federal Open Market Committee (FOMC) meeting, the U.S. consumer price index (CPI), due on 11 September, is expected to provide a basis for monetary policy decisions. Japan’s long-term interest rates may be watched for direction against the backdrop of expectations that the Bank of Japan will accelerate its rate hikes.
Oil prices are expected to remain at elevated levels as tensions escalate in the Middle East. In other news, the Republican Party led by U.S. President Donald Trump is reportedly planning to hold midterm election conventions on 9 and 10 September, an unusual move intended to rally its support base amid headwinds.