The Nikkei turned positive after the open, with the resilience of semiconductor stocks supporting the market following the previous day's sharp drop. Attention also focused on developments in U.S. markets and currency fluctuations.
Tokyo stocks opened lower on the 9th as investors reacted to the previous day's decline of about ¥1,130, but the Nikkei moved into positive territory after the open. As of 9:05 a.m., it was trading ¥215 above the previous day's close.
Although major U.S. stock indexes all fell in overseas trading, the SOX Index, which comprises semiconductor-related stocks, rose for a fourth straight day, providing support for semiconductor-related shares in Tokyo. The pause in the rise of domestic long-term interest rates also offered some reassurance.
In currency markets, USD/JPY moved sharply. During Asian trading hours on the 8th, the yen strengthened to ¥152.89 at one point, but after the open it traded from the upper ¥153 range to the ¥154 range. This movement did not indicate a one-way trend in either direction for the yen, and individual moves will need to be monitored.
From the latter half of this week onward, key events are scheduled, including the U.S. PPI and CPI, followed next week by the FOMC and the Bank of Japan's monetary policy meeting. Investors are focused on the level and movement of the market after the open, as well as USD/JPY.
The 3 points to watch today are the opening level, market movement after the open and developments in USD/JPY. The market is expected to reflect a mix of a rebound from the previous day's sharp drop and a wait-and-see stance ahead of the events.