Selling is expected to lead trading in the Japanese stock market on the 8th against a backdrop of losses in U.S. stocks, but the market is expected to shift toward buying on dips once the initial selling subsides. There are reports that interest may again focus on security-related and other thematic stocks.
Selling is expected to lead trading in the Japanese stock market on the 8th, with selling likely to emerge even before the open following the decline in U.S. stocks. In the previous day's U.S. market, the Dow fell $341 and the Nasdaq declined, while the 10-year Treasury yield, a benchmark for long-term U.S. interest rates, reached its highest level in 24 years, weighing on the market. Nikkei 225 futures were dominated by selling compared with Osaka, and at one point extended their decline during daytime trading.
While the Nikkei 225's movements could prompt short-term selling, buying on dips is likely to emerge when the sense of overheating in revision activity eases. However, weakness in semiconductor and AI-related stocks is weighing on the market as a whole, and developments in specific sectors could affect the overall market.
Yesterday, index-sensitive stocks such as Advantest, Tokyo Electron and Kioxia Holdings traded weakly. Against this backdrop, views have emerged that interest in security-related and other thematic stocks could increase again. The market is expected to seek opportunities to buy on dips while assessing its resilience after the initial selling subsides.