The Nikkei 225 first broke above ¥70,000 on a closing-price basis on 18 June, then returned to the ¥70,000 range on 6 October for the first time in about three months. The focus for the market outlook is the situation in the Middle East and the impact of the US midterm elections.
The Nikkei 225 broke above ¥70,000 on a closing-price basis on 18 June. This was driven by expectations that ceasefire negotiations between the United States and Iran would advance and ease tensions in the Middle East. A week later, on the 25th, it recorded an all-time high closing price of ¥72,366.
The ceasefire negotiations then stalled, while higher oil prices and expectations that central banks would raise interest rates sooner in response to rising prices weighed on the market, leaving it in the ¥60,000 range for the following three months.
Daiwa Securities Chief Strategist Tsuboi Hirotake (坪井 裕豪) said, "The market bought on expectations, but corporate earnings failed to keep up and could not overcome the negative factors."
The market has entered a phase of moving higher again this month, but the future direction may be affected by developments in the Middle East and the outcome of the US midterm elections.