The Nikkei 225 is expected to test the ¥67,000 level next week, with the direction of US interest rates and the US jobs report likely to determine the market’s direction. Strong NVIDIA earnings and improving Salesforce results are supporting the market, while concerns are mounting over the risk of higher US long-term yields.
The key question for Japanese equities next week is whether the Nikkei 225 can break above ¥67,000. The index is expected to trade in the ¥65,000–¥68,000 range. Strong NVIDIA earnings and renewed buying of SaaS-related stocks may provide support, while higher US long-term yields could weigh on the upside.
NVIDIA’s earnings beat market expectations, highlighting strong demand for data centers. The stock’s rise in the US market is likely to spread to Japanese semiconductor and AI-related stocks, although growth expectations have increasingly been priced in and investors will be watching the pace of future AI investment.
Salesforce also reported strong results, prompting renewed buying of SaaS-related stocks. Expectations are strengthening that AI will support growth rather than replace traditional software, which is likely to serve as a catalyst for Japanese IT and software stocks.
The direction of US long-term yields will be one of next week’s key focuses. The fiscal deficit, increased issuance of Treasury and corporate bonds, and rising corporate bond issuance associated with AI investment could push long-term yields higher, potentially restraining growth stocks.