As views spread that the course of the US-China summit will determine tomorrow’s market direction, the Japanese market is also watching US interest-rate trends, the Bank of Japan’s normalization policy and corporate earnings. Depending on the outcome of future talks, the movement of each index could be affected.
The Tokyo stock market rebounded today for the first time in 4 sessions, with the Nikkei 225 up ¥495 from the previous day at ¥65,513. Although trading was active during the day, led by buybacks, gains were limited throughout the session, and the market closed at its intraday low in the afternoon session.
As major catalysts this month, the ECB, the Federal Reserve and the Bank of Japan have each raised interest rates by 0.25 percentage points, and market views are spreading that the likelihood of an additional Federal Reserve rate hike by the end of the year is increasing.
The final outcome of the US-China summit has become the market’s main focus, with prospects emerging that up to 4 meetings could be held by the end of the year. The relationship between Japan and the United States and the direction of their economic policies could affect the balance between cooperation and competition between the United States and China.
Meanwhile, domestic events scheduled for this week include the release of August sales figures for food supermarkets and department stores nationwide, as well as レイヤード’s initial listing. Information has also been released on market closures in Taiwan and China. In the private sector, AI- and semiconductor-related stocks remained firm, while rare-earth-related stocks came under selling pressure at times.
Market participants believe that the outcome of the US-China summit could lead to a reassessment of investment themes.