Japanese stocks are expected to remain firm in the week of 10–14 August, supported by the return of funds to AI- and semiconductor-related stocks and fading expectations for US rate hikes. The yen is likely to see a one-way decline restrained by concerns over currency intervention.
Japanese stocks are expected to trade broadly higher in the week from 10 to 14 August. The return of funds to AI- and semiconductor-related stocks is likely to drive the market, while fading expectations for US rate hikes following weaker-than-expected US employment data are also expected to provide support.
In the foreign exchange market, concerns over currency intervention by the government and the Bank of Japan are expected to persist, potentially restraining a one-way, sharp decline in the yen. As a result, fund flows are expected to remain limited despite the influence of external factors.
In the United States, the July Consumer Price Index (CPI) is scheduled to be released on 12 August. There is also a view that price trends for AI-related products and advanced semiconductors could attract attention as new inflationary factors and potentially reignite calls for rate hikes.