Today’s projected range for the Nikkei Average is an upper bound of ¥68,500 and a lower bound of ¥67,500. Buybacks are expected to lead the market in reaction to the consecutive declines, but the sluggishness of any recovery is a concern. Ahead of developments in the US market and earnings announcements by AI-related companies, investors are also watching for a wait-and-see mood.
Today’s projected range for the Nikkei 225 is an upper bound of ¥68,500 and a lower bound of ¥67,500. In response to the decline through the previous day, buybacks are expected to lead the market, influenced by earnings developments among AI-related stocks and the performance of US equities. The Tokyo market is expected to rebound after its decline through the previous day, although the sluggishness of the recovery remains a concern.
The Dow fell $180.45 on 13 October to $51,670.10, the Nasdaq Composite fell 41.52 points, and Chicago Nikkei 225 futures were up ¥245 from Osaka. ASML is scheduled to announce its earnings in the afternoon Japan time, with attention focused on whether it will raise its full-year forecast. Uncertainty over the situation in the Middle East could also weigh on the market.
The view has emerged that buying of lagging stocks will continue in the Tokyo market, with funds also expected to flow into companies with earnings prospects outside the AI sector. The upside targets for the Nikkei Average are cited as ¥69,000, ¥69,314 and ¥70,000, while ¥67,000, ¥66,366 and ¥66,000 are seen as downside levels.
The main focus going forward is expected to be the earnings of major AI-related companies, developments at ASML and the course of events in the Middle East. The overall view is that the market will remain generally firm as investors assess these factors.