China’s continued lockdown, volatile US stocks hamper domestic economic recovery? (May 23-27)[Stocks and exchanges This week’s aim]: J-CAST Company Watch[Full text display]

Since March 2022, China has been locked down by the “Zero Corona Policy” to prevent the spread of the new coronavirus. As a result, the Chinese economy has slowed down, and even in Japan, the arrival of home appliances has begun to stop.

In addition, there are concerns that economic indicators in the United States are lower than market expectations and weigh on the economy. US stocks will become unstable, and there are concerns about the impact on Japanese stocks.

What it will be! ?? This week’s stock and exchange market!

  • The road to Japan’s economic recovery is far …

  • The road to Japan's economic recovery is far ...

Tokyo Stock Market Unstable movements in US stocks

Nikkei Stock Average Forecast range: 26,000 yen to 27,300 yen

Friday, May 20, 2022 Closing price 26,739.03 yen

Is the Nikkei Stock Average on the Tokyo Stock Market this week in conflict?

The Nikkei Stock Average on the Tokyo Stock Exchange last week rose for the first time in two weeks, despite the sharp decline in the Dow Jones Industrial Average on the New York Stock Exchange.

This week’s Nikkei Stock Average is likely to be in conflict. Many have pointed out that Japanese stocks are cheap, and it seems that we can expect the development to try the upper price.

However, on the other hand, there are concerns about a slowdown in the Chinese economy due to the effects of lockdown due to the spread of the new coronavirus infection, and in addition, many economic indicators in the United States are below market expectations, raising concerns about economic deterioration. ing.

There are concerns that normalizing monetary policy to curb inflation will lead to higher long-term interest rates, which weighs on the U.S. economy, and U.S. stocks are likely to remain volatile. There are concerns about the impact on Japanese stocks, so we would like to pay attention to trends in the US market.

Tokyo foreign exchange market US dollar top price is heavy …

Expected range of dollar / yen: 1 dollar = 126.50 yen to 129.00 yen

Friday, May 20, 2022 Closing price 127.85 yen

Is the dollar-yen exchange rate heavy on the dollar in this week’s foreign exchange market?

In the dollar-yen exchange rate last week, the dollar fell. With the interest rate hike due to the normalization of US monetary policy, there was a growing concern that the US economy would deteriorate, and the dollar temporarily fell to the mid-127 yen level.

This week’s dollar-yen exchange rate is likely to have a heavy dollar upside. Contrary to the US financial authorities, which are pushing to raise interest rates to curb inflation, growing concerns about the US economic downturn have led to a phase in which long-term US interest rates are declining. However, there is no change in the interest rate hike policy of the U.S. financial authorities, and the dollar’s appreciation trend has not changed against the backdrop of the interest rate differential between Japan and the United States. You need to be careful about the result of.

In Japan, economic indicators such as the revised index of business conditions in March on the 25th and the consumer price index in the Tokyo metropolitan area in May on the 27th are scheduled to be announced.

Overseas, new home sales in April in the United States on the 24th, FOMC (Gross Domestic Product) minutes (held on May 3 and 4) on the 25th, orders for durable goods in April in the United States, 26 The revised GDP (Gross Domestic Product) for the January-March quarter of the United States is scheduled to be announced on the 27th, and the personal income and expenditures for April in the United States are scheduled to be announced on the 27th.

(Kaichi Washio)

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