Japanese stocks on the 7th are expected to be driven mainly by semiconductor and AI-related stocks, with a rebound in focus following developments in U.S. markets and the U.S. employment report.
Japan's stock market on the 7th is expected to be driven by semiconductor and AI-related stocks, against the backdrop of declines in the Dow Jones Industrial Average and Nasdaq in U.S. trading on the 4th. The August U.S. employment report showed that nonfarm payrolls exceeded market expectations, raising expectations of an early rate hike and pushing up long-term interest rates, which weighed on the market. At the same time, reports indicated that some semiconductor stocks had attracted buying. Buying led through futures, and the Nikkei 225 widened its gains toward the end of the session, rising to around ¥65,970.
In U.S. markets, major stock indexes fell, while the Philadelphia Semiconductor Index rose more than 3% as stocks including Micron Technology attracted buying. There is a view that large-cap stocks such as ADVANTEST, KIOXIA Holdings, Tokyo Electron and SoftBank Group are likely to rebound. As the U.S. market will be closed on the 7th for the Labor Day holiday, trading by overseas investors is expected to be limited, and futures-led moves may become more pronounced.
Overall, funds are expected to flow into small- and mid-cap stocks at times, against a backdrop of limited scope for supply and demand to expand. Whether futures-led momentum in semiconductor and AI-related stocks will strengthen is likely to be the focus.