Tokyo stocks are expected to suffer a sharp pullback on the 11th, with risk aversion likely to prevail amid higher crude oil prices and rising US interest rates. The projected range for the Nikkei is ¥63,000–¥64,000.
The market outlook for the 11th points to a sharp decline in the Nikkei, with investor caution expected to intensify amid moves in the US and European markets and the impact of prices and interest rates. In the previous session, US long-term interest rates rose and crude oil prices surged, reportedly reinforcing risk aversion.
The factors behind the move include the ECB's 0.25-percentage-point rate hike and its warning about future inflation risks, as well as stronger-than-expected US PPI growth in August. The US long-term interest rate is expected to approach 5%, which is likely to further strengthen risk aversion across the market.
Crude oil prices surged, with the front-month WTI contract reportedly reaching the $104-per-barrel range at one point. Market attention is therefore focused on developments, particularly in resource-related stocks.
Key domestic and overseas indicators and events scheduled for release include the SQ settlement calculation, economic data before the market opens, the US consumer price index, and the University of Michigan Consumer Sentiment Index. In terms of new listings, a stock is also scheduled to list on the TSE Growth Market.