With the release of the Tankan survey and US employment report due this week, developments in key domestic and overseas indicators are expected to have a direct bearing on the interest-rate outlook. Depending on the release of the US PCE price index and the results of the September employment report, attention will focus on the reactions of long-term yields and the stock market.
In the US market last week, technology stocks rose, and the Japanese market moved higher, led by AI- and semiconductor-related stocks. This week, the Tankan survey and the main opinions from the Bank of Japan’s Monetary Policy Meeting will be released, potentially affecting domestic financial conditions.
In the United States, the PCE price index is due to be released, and there is a view that inflation trends could strengthen expectations for a Federal Reserve rate hike. Attention is also focused on the September US employment report. The unemployment rate is expected to remain unchanged from the previous month at 4.1%, while nonfarm payrolls are expected to increase by approximately 100,000 month on month.