The Nikkei 225 is likely to test the upside from 12 to 16 on expectations for strong earnings at AI-related companies. The view is emerging that long-term interest rates will fall below 3%. The yen is expected to remain firm against the US dollar.
The Nikkei 225 is expected to have opportunities to test the upside around 12 to 16, as investors’ expectations for earnings growth at AI-related and semiconductor-related companies strengthen.
In the domestic bond market, the view is spreading that fiscal concerns have eased, and the view is emerging that long-term interest rates will fall below 3%. Some observers attribute this to comments by Prime Minister Takaichi Sanae (高市 早苗).
In the foreign exchange market, coordinated action by Japanese and US authorities is expected to support the yen’s firmness against the US dollar, while oil prices may remain elevated as tensions in the Middle East continue.