With US employment data below market expectations and expectations for an early Federal Reserve rate hike receding, buying in AI and semiconductor-related stocks is leading Japanese equities. The Nikkei is expected to test a recovery into the ¥70,000 range during trading hours.
In the US market, employment data came in below market expectations, prompting a retreat in expectations for an early rate hike by the Federal Reserve Board (FRB).
In Japanese stocks, buying entered AI and semiconductor-related issues as a driver of the index, raising the possibility that the Nikkei could recover into the ¥70,000 range during trading hours for the first time in about 3 months. The rise in the SOX Index also suggested strength in technology stocks.
The article cites the views of Shoji Hirakawa (平川 昇二), chief global strategist at Tokai Tokyo Intelligence Lab, and notes that stock selection in AI-related issues could influence the Nikkei's direction.
Against the backdrop of financial market movements, buying in AI and semiconductor-related stocks is expected to remain the focus of the Japanese market.