Today's stock outlook = solid, export stocks solid with weak yen

TOKYO (Archyde.com) – Today’s Tokyo stock market expects the Nikkei 225 Stock Average to remain firm. The US stock market on the previous day saw a rise in the Nasdaq Composite, and the depreciation of the yen against the dollar/yen exchange rate is a supportive factor, and Japanese stocks are expected to start with buying predominance. Export stocks in particular are expected to perform well. However, it is unlikely that the market will move with price fluctuations due to lack of material, and it is likely that the market will continue to develop while keeping an eye on US stock futures and exchange rate trends after the trading round is completed.

The expected range for the Nikkei average is 27,600 yen to 27,800 yen.

The US stock market was mixed yesterday after January’s CPI reading was not enough to change the Federal Reserve’s interest rate hike outlook. The S&P 500 and Dow Jones Industrial Average fell while the Nasdaq closed higher.

The Labor Department’s seasonally adjusted CPI rose 6.4% year-on-year in January, down from 6.5% the previous month. It exceeded market expectations of 6.2%. It increased by 0.5% compared to the previous month, and the growth accelerated from the previous month (up 0.1%).

Today’s Japanese stock market began with a buying dominance and is expected to develop steadily. The US stock market was mixed on the previous day, but the Nasdaq Composite finished higher, which should help Japanese stocks. However, due to the lack of new materials, the price is expected to fluctuate slightly after the rising lull.

Hiroyuki Mori, head of the investment information office at Okaji Securities, said yesterday that Japanese stocks by sector had risen almost across the board. Uncertainty about domestic factors such as personnel affairs at the Bank of Japan has eased, and downside risks are said to have decreased.

The depreciation of the yen is favorable, and export stocks are likely to perform well. “Looking back at financial results, many export companies assume an exchange rate of around 130 yen to the dollar,” said Mori, pointing out that if the exchange rate exceeds that level, it will likely lead to buying export stocks.

In terms of the main schedule, domestically, the tertiary industry activity index (Ministry of Economy, Trade and Industry) will be announced in December, and overseas, retail sales in the United States in January (Ministry of Commerce) will be announced.

Closing price of the previous business day Highest price since last year Low price since last year

Nikkei Average 27602.77 29388.16 24681.74