Today's stock outlook = soft, disgusted with US stock prices, wary of selling stocks

TOKYO (Archyde.com) – Today’s Tokyo stock market is expected to see a weaker Nikkei Stock Average. The Nikkei Stock Average is also expected to start selling ahead because the three major indexes fell all together in the US stock market the day before. US long-term interest rates are on the rise amid fears of prolonged monetary tightening following hawkish remarks by senior Federal Reserve officials. There is also the possibility that stocks will be sold at interest rate sensitive prices, and the Nikkei Stock Average is likely to search for lower prices.

The expected range for the Nikkei Stock Average is 27,800 yen to 28,000 yen.

In the US stock market on the previous day, all three major indexes fell. Data released on Thursday showed a rise in job openings, fueling fears that the Federal Reserve (Fed) will continue to push forward with its aggressive rate-hiking trajectory.

Today’s Japanese stock market is expected to take over the trend of US stocks falling and start selling ahead, and it is expected that the trend will continue below the psychological milestone of 28,000 yen.

New York Fed President John Williams said on Wednesday that the Federal Reserve will likely need to raise interest rates to somewhat above 3.5% to deal with high inflation, with a 2023 target. He said a rate cut was unlikely.

In response to this, “It is easy to be aware of the sense of caution about the prolonged tightening of the US monetary policy, and today’s Nikkei 225 is likely to seek a lower price. It may be a development to reconfirm the weight of the upper price above 28,000 yen. Isn’t there?” (Mr. Yutaka Miura, Senior Technical Analyst at Mizuho Securities).

The 10-year US Treasury bond yield is currently on the 3.1% level, and is on an upward trend again.

There was also an opinion that “growth stocks with high prices are likely to move weakly” (Mr. Miura). Miura said he expects today’s Nikkei average to drop to around 27,800 yen, but pointed out that if after-hours US stock futures trade weakly, the margin of decline could widen.

In terms of the main schedule, in Japan, the Ministry of Economy, Trade and Industry’s preliminary report on mining and industrial production in July is scheduled to be released, and Nakagawa, a member of the Bank of Japan’s advisory committee, is scheduled to give a greeting at the Hakodate City Finance and Economy Round-table Conference, followed by a press conference. Overseas, China announced the August manufacturing PMI (National Bureau of Statistics), the Euro zone August consumer price index (Statistics Bureau), and the US mortgage/refinancing application index (American Mortgage Bankers Association). plan to

Closing price of the previous business day High price since the beginning of the year Low price since the beginning of the year

Nikkei Average 28195.58 29388.16 24681.74