The Tokyo stock market on the 31st is expected to remain soft following the previous day's decline. Selling is expected to lead the market against the backdrop of falls in U.S. markets, while ADRs were indicated at lower yen-converted levels.
The Tokyo stock market on the 31st is expected to remain soft after falling again, following the selling trend that continued from the previous day. Falls in U.S. markets are expected to prompt selling amid a lack of market catalysts, leaving the market with little directional momentum. The dollar/yen exchange rate is in the low ¥160s and the euro/yen rate is around the mid-¥185s, showing mixed movements.
ADRs on the 24th local time, including those of DISCO, Renesas and Advantest, were lower on a yen-converted basis than their Tokyo closing prices. The yen-denominated settlement price for Chicago Nikkei 225 futures was ¥65,780, down ¥670 from the previous day, suggesting continued weakness.
Domestic indicators scheduled for release on the 31st include the July Current Survey of Commerce, July industrial production, June automobile production and July housing starts. Overseas, China's August manufacturing, non-manufacturing and composite PMIs, India's April–June GDP, and the G7 and G20 finance ministers' and central bank governors' meetings are scheduled and are expected to be watched as market catalysts.