The Nikkei average is expected to trade around the morning closing level in the afternoon session, as expectations continue to build for further US rate hikes and elevated long-term interest rates. Concerns about a slowdown in AI development will also weigh on related stocks, while interest rates and commodity market trends will remain in focus.
The Nikkei average became increasingly directionless during the morning session, and was expected to continue trading around the morning closing level in the afternoon. The Nikkei average was trading at 63396.00, slightly below the previous day's close. The TOPIX was up marginally at 4057.44.
Regarding developments in the US market, expectations for a rate hike at the Federal Open Market Committee (FOMC) meeting in September have strengthened, and long-term interest rates are believed to be maintaining high levels.
The market's focus has shifted to interest rate trends in Japan and the US and commodity markets. Higher crude oil prices were also seen as a factor discouraging buying. It was also pointed out that developments in AI-related stocks could be affected, with concerns about a slowdown in AI development weighing on the market.