The bullish and bearish factors cited for 10/22 included gains in major stock indexes and increased share buyback activity, while caution over rising US long-term interest rates and tariff policies was also noted.
Through 22 October, the Nikkei 225 rose 545.82 from the previous day to 64621.24, while the major US stock indexes also all moved higher. The Dow Jones stood at 52856.09, up 360.21; the Nasdaq Composite at 26702.86, up 278.04; and the SOX Index at 11505.56, up 221.74. Chicago Nikkei 225 futures also rose to 65015, up 235.
Bullish factors cited included rebalancing demand resulting from TOPIX's regular constituent changes and revisions to free-float ratios, increased share buyback activity, and the Tokyo Stock Exchange's call for companies to improve corporate value. Some market observers believe these developments have improved overall market liquidity and increased risk appetite.
Bearish factors, meanwhile, included rising US long-term interest rates, tariff policies under the Trump administration, and concerns over an economic slowdown in China. These factors have heightened investor caution as developments affecting overseas markets and could contribute to short-term market volatility.
The items to watch included announcements on inward and outward securities investment, September machine tool orders, September China's SWIFT Global Payments data denominated in yuan, September new car sales in the euro area, the Turkish central bank's policy rate decision, US initial jobless claims, the US composite index of economic indicators, the euro-area consumer confidence index, and the Bank of Korea's interest rate decision.