Japanese stocks are expected to seek a recovery on semiconductor earnings, while the yen is expected to remain soft this week. Major AI and semiconductor-related companies are set to report earnings one after another, with an improvement in market sentiment the focus.
The Nikkei 225 is expected to seek a recovery from the previous week's decline from 26 to 30 October. Major AI and semiconductor-related companies are scheduled to report earnings one after another, and stronger-than-expected results could prompt renewed buying of Japanese stocks.
Among individual catalysts, market attention is focused on earnings from semiconductor-related companies including Kioxia. Whether stable earnings can be demonstrated in a high-growth sector will be watched as a factor affecting the sustainability of a broader recovery in Japanese stocks.
The Federal Reserve Board (FRB) will hold an FOMC meeting from 27 to 28 October. Despite persistently high inflation, the consensus view is that the policy rate will remain unchanged, while market expectations ahead of the announcement are expected to have an impact.
As the yen is expected to remain soft, overlapping currency trends driven by the Japan-US interest-rate differential and central-bank events could amplify short-term market moves.