Japanese and US stocks are expected to see sharp volatility this week as market catalysts become concentrated around the turn of the month. Factors including US jobs data, the Bank of Japan Tankan survey and Micron’s earnings could move the market.
Last week, the domestic stock market remained firm amid the effects of the extended holiday period, supported by higher US stocks and buying in AI- and semiconductor-related stocks. With the October market approaching, this week is packed with key catalysts, including US jobs data, the Bank of Japan Tankan survey and Micron’s earnings. The focus is likely to be on whether the market can clear the overhead resistance line on the charts and make a full upside breakout, despite rising interest rates in Japan and the US that could cap gains.
In the domestic market, trading resumed after the holiday period without disruption. The Nikkei 225 closed at ¥66,364, up ¥1,346 from the previous weekend. The 5-minute chart showed continued trading with ¥66,000 as a reference level, while the downside appeared to be steadily rising.
AI- and semiconductor-related stocks were the main contributors to the Nikkei 225’s performance, with Advantest, Tokyo Electron and Ibiden showing notable moves. The next focus is whether buying in AI- and semiconductor-related stocks will continue and whether value stocks will at times provide support for the market.
This week’s catalysts include US jobs data, the Bank of Japan Tankan survey and Micron’s earnings. These are expected to focus attention on interest-rate trends in Japan and the US and on market risk signals.