Against a backdrop of declines in US stocks, a stronger yen and higher oil prices weighing on the market, semiconductor-related stocks are expected to support trading. Attention will focus on the Nikkei average as it trades around ¥65,000.
The prevailing view is that the downward trend in US stocks, a stronger yen and rising oil prices will weigh on the Japanese market. As a result, the Tokyo market is expected to remain prone to weakness.
Movements in semiconductor-related stocks are cited as a factor supporting the market and are expected to help moderate overall downside pressure. The performance of specific sectors is expected to become the local focus of trading.
The Nikkei average is expected to trade around ¥65,000, potentially resulting in a drawn-out price movement. Investors will need to monitor developments in semiconductor-related stocks closely.