Buying is expected to lead ahead of the last trading day with rights for September fiscal-year-end stocks, against the backdrop of gains in U.S. equities. However, expectations for further yen strength could lead investors to hold back from buying export-related stocks.
Tokyo stocks on the 28th are expected to see buying lead following gains in U.S. equities. The last trading day with rights for September fiscal-year-end stocks is also expected to provide a buying incentive. Rights-related buying is expected to continue supporting the market.
At the same time, the yen has been moving stronger. With USD/JPY in the lower ¥157 range and EUR/JPY in the lower ¥179 range, the stronger yen is expected to weigh on export-related stocks.
Uncertainty remains over the outlook for U.S.-Iran talks concerning the Strait of Hormuz, and trading could develop with investors broadly holding back. In Friday's ADR trading, Nippon Steel, Advantest and Rohm rose on a yen-converted basis.
Nikkei 225 futures have fluctuated relative to the previous Friday's Osaka Exchange settlement price. Together with movements in high-contribution stocks, the overall market is expected to trade in a range.