The Nikkei Average is expected to experience turbulence at high levels. Against a backdrop of a lack of market-moving catalysts ahead of the US midterm elections and uncertainty surrounding the Middle East, attention is focused on how the autumn market will move toward reclaiming the ¥70,000 range.
The Nikkei Average fell sharply for a fourth consecutive session on the 13th. With the market expected to remain constrained on the upside ahead of earnings announcements and the US midterm elections, future movements are expected to depend on the data and corporate earnings announcements.
As a key point for the autumn market, the Nikkei Average is said to be expected to trade in a range of approximately ¥65,000 to ¥71,000 as earnings announcements in Japan and the US gather momentum. There are many uncertainties underlying this outlook, and there is also a view that downside risk is limited.
The market is expected to alternate between semiconductor-related stocks and entertainment-related stocks as areas of investor interest. Specifically, there was a view that semiconductor-related stocks such as Advantest, Ibiden and Macnica Holdings, as well as stocks such as Sony Group, Bandai Namco Holdings, Happinet and サンケイオ, offer investment appeal.