The Nikkei Average rebounded ahead of next week’s stock market, supported by gains in US stocks the previous day. With few catalysts ahead of Jackson Hole, attention is turning to next week’s market direction.
Japanese stocks rose on the 28th, with the Nikkei Average gaining approximately ¥277 from the previous day to close around ¥66,405. Japanese stocks also rebounded as the US market remained firm following earnings from major US semiconductor company NVIDIA.
At the same time, the market is showing a strong sense of a lack of catalysts ahead of the Jackson Hole meeting, and a wait-and-see stance spread after the initial buying ran its course. Views have emerged that the market’s direction could depend on the content of Federal Reserve Chair Warsh’s speech.
In terms of market conditions, TOPIX rose for the 7th consecutive session and is within reach of record-high levels. Some AI and semiconductor stocks remain heavy at the upper end, while software-related stocks are also showing signs of a revival.
Funds are also rotating into small- and mid-cap stocks, with trading activity picking up mainly among stocks listed on the Tokyo Stock Exchange Growth Market. Terra Drone, ティアフォー and GO were among the stocks that appeared in the top ranks by trading value at times.
Next week will bring a series of US jobs and major economic data releases, while attention will also be needed on the schedule for domestic corporate earnings announcements and developments related to the Bank of Japan. Market views put the Nikkei Average’s expected range at approximately ¥65,300 to ¥68,000.