Tokyo stocks on the 14th are expected to open sharply lower, but may recover after the initial sell-off runs its course. Uncertainty over the situation in the Middle East and developments among US AI-related companies are likely to be the market's focus.
The expected range for Tokyo stocks on the 14th is ¥63,200 to ¥64,200, while the previous Friday's closing price was ¥64,011.34. The course of events in the Middle East, which contributed to the decline in US stocks, and developments involving US companies in the AI sector are expected to affect the market.
The yen is trading stronger at around ¥153.50 to the US dollar and ¥178.25 to the euro, which could weigh on export-related stocks. In yen-converted terms, ADRs of SUMCO, Furukawa Electric and Sumitomo Electric, among others, are trading above their Tokyo closing prices on a day-on-day basis.
The Tokyo market's futures settlement price was ¥64,535, up ¥575 from the previous day, and investors are expected to watch for market direction after the initial sell-off subsides. The announced postponement of talks on the situation in the Middle East and comments from AI-related companies have been cited as factors contributing to market volatility.
The main domestic economic indicators and events scheduled for release include the finalized July industrial production index and the July operating ratio and production capacity indices for the manufacturing sector. Overseas, India's consumer price data are due.