The Nikkei continued to decline last week, testing its ability to hold in the ¥65,000 range. Next week, monetary policy events in Japan and the U.S. and earnings from major companies will be in focus, with results from Meta Platforms potentially influencing the market's direction.
The Nikkei ended last week down 3,706 points at 65,324, marking its first weekly decline in 5 weeks. The 65,000 level is being watched as both resistance and support, and selling could return this week depending on futures activity.
Next week's market is expected to reach a key phase with monetary policy events in Japan and the U.S. and earnings from major hyperscalers, as preparations continue. Past lows and the night-session close are likely to attract attention as downside benchmarks for the Nikkei, while earnings trends could largely determine the market's direction.
Companies whose earnings will be in focus this week are expected to include META, DISCO, FANUC, Tesla, IBM, Western Digital, TXN and PG. META is scheduled to report after the close on the 21st U.S. time, and the level will be important, with its future earnings outlook potentially becoming a market driver.
Interest rate trends also warrant attention. Although yields on 10-year Japanese and U.S. government bonds are trending lower, caution remains over corporate bond movements. Price action in CoreWeave's bonds is one factor contributing to market risk, and the trend in yield spreads will also be closely watched.
The TOPIX fell only 0.95% from the previous week, while consolidation continued near its moving averages. Defense and financial stocks have at times found support at lower levels, and the market could become active again depending on developments during earnings season.