TOKYO (Archyde.com) – The Tokyo stock market is expected to strengthen this week. In addition to the financial results announcement season reaching its peak, the US July CPI (Consumer Price Index) is scheduled to be announced on the 10th, and as business is dwindling before the Obon holiday, it seems that the overall mood will become more wait-and-see. Stronger-than-expected U.S. employment data continue to spur fears of tightening U.S. monetary policy, but strong corporate earnings so far are expected to support stocks.
The expected range for the Nikkei Stock Average is 27,800 yen to 28,500 yen.
The U.S. employment statistics had been prepared in advance, saying, “If it is strong, there is concern about monetary tightening again, but if it is weak, there is concern about an economic recession. Center Senior Strategist Takashi Nakamura) was heard. The results were stronger than expected, but Hiroyasu Mori, head of the investment information department at Okaji Securities, said, “Although there are concerns about monetary tightening again, Japanese stocks won’t collapse significantly.”
Even after the release of the employment statistics, there is a high possibility that the announcement of financial results will be postponed due to the peak of the announcement of financial results and the announcement of the US CPI. many. However, as a rule of thumb, when the market is thin, unexpected movements are triggered by something. There is also the possibility of this,” said Kyoko Amemiya, president of Amemiya Research Institute.
There are also voices pointing out that the recent strong market is an improvement in the environment. Eiji Kinouchi, Chief Technical Analyst at Daiwa Securities, said, “It is significant that crude oil futures have fallen to levels before the invasion of Ukraine. As for geopolitical risks, if China ends its military exercises around Taiwan as planned, the risk is on. There is a possibility that it will be tilted toward.”
In addition, “It is important to confirm that corporate earnings, which have been revised downward one after another in Europe and the United States, are generally strong in Japan,” said Maki Sawada, a strategist at Nomura Securities. There are many cases in which stock prices are divided between bright and dark depending on the financial results, but even if the market as a whole becomes more wait-and-see, there is a possibility that the stocks with good earnings will support the overall market.
In the timetable, interest in the US CPI on the 10th is high. Tokyo Electron on the 8th, Softbank Group, and Honda on the 10th are likely to be the focus of domestic earnings announcements.
* Economic indicator forecast[JP/FOR]
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