US stocks are expected to show a mixed performance, while the Nasdaq's rise is being viewed as a reassuring factor for the market. The focus will be whether the Tokyo market can remain firm.
The focus for the Tokyo market is whether it can remain firm. US stocks at the end of last week finished mixed, with the Dow Average falling while the Nasdaq and S&P 500 rose. The Dow Average ended down approximately $237, and the October employment report showed that nonfarm payrolls significantly exceeded market expectations, reportedly reinforcing expectations of an early rate hike. Meanwhile, AI-related stocks saw some dip buying.
The Nikkei Average fell by more than ¥5,000 last week as weakness in AI-related stocks spread across the broader market. The Nasdaq was seen ending higher at times as US investors bought AI-related stocks, which was viewed as a reassuring factor. Some have also pointed out that profit-taking on gains is likely if the market moves higher today. Given the Dow's decline, a market environment in which stocks other than AI-related names are avoided is also anticipated. The Nikkei Average's projected range was ¥57,000 to ¥58,800.
USD/JPY is currently trading around ¥158.40. It has also been reported that CME Nikkei futures ended trading at ¥58,235 on a yen basis and ¥58,265 on a dollar basis. The market is therefore expected to remain volatile.