The Nikkei is widely expected to remain firm as expectations for US rate hikes recede, while attention in South Korea is focused on July household lending trends and employment indicators. The return of funds to AI- and semiconductor-related stocks and the US CPI data will be the key focus this week.
Japan’s markets are expected to remain firm this week, supported by receding expectations for US rate hikes and a return of funds to AI- and semiconductor-related stocks. The US CPI, due on the 12th, is expected to draw attention to higher gasoline prices and rising prices for AI-related services as potential new sources of inflation.
In South Korea, July financial trends will be released on the 13th, amid reports that household loan balances rose sharply in July. Household lending is expected to continue increasing, led by mortgage lending, while the same day’s import and export price data are expected to reflect trends in oil and semiconductor prices.
On the employment front, July employment trends will be closely watched, as the effectiveness of government measures to address difficulties faced by younger workers comes under scrutiny. Responses from the business community and the government could also affect market trends going forward.