
Tokyo Stock Exchange
18:29 JST, October 7, 2023
TOKYO (Jiji Press) — Tokyo stocks are expected to remain on a weak note next week as a correction phase continues, market sources said Friday.
Last week, the Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section plummeted 862.95 points, or 2.71%, to end at 30,994.67.
Investor sentiment worsened as stronger-than-expected U.S. economic indicators fueled worries about prolonged monetary tightening by the Federal Reserve, pushing U.S. Treasury yields higher.
The Nikkei average lost more than 1,800 points in a five-session decline through Wednesday before recovering some of the losses on Thursday. The stock market is believed to have been weighed down by portfolio rebalancing by pension funds.
In the holiday-shortened week from Tuesday, the Nikkei average is expected to move mainly between 30,000 and 31,500, analysts and brokers said. They noted that the market may test its downside again if investor sentiment is hurt by factors such as the U.S. political impasse.
“We’re not in a situation to be confident that the market has bottomed out,” an official at a midsize securities firm said.
“Trading volume suggests that investors are not buying back stocks in earnest,” an official at a major brokerage noted.
Tokyo stocks are also likely to be affected by how U.S. equities and Treasury yields react to Friday’s September employment report by the U.S. government.
Meanwhile, Japanese retailers and others will continue to report results for the June-August quarter this week, with investors focusing on domestic private consumption trends.
"Business" POPULAR ARTICLE
-
U.S. Holds Fire Over Yen Exchange Rate Targets; Bessent Said to Understand Negative Impact on Markets
-
Rents Mark 30-Year-High Rate of Rise; Decrease in Disposable Income May Dampen Personal Consumption
-
Japanese Govt Mulls Raising Number of Cars to be Imported Under Simplified Screen System in U.S. Tariff Negotiations
-
Japan Must Boost Its ‘Indispensability,’ Urges JETRO Chair; Convince United States That Cooperation Will Be Beneficial
-
ADB to Discuss Ending Loans to China Following Demand by U.S., ADB President Says
JN ACCESS RANKING
-
U.S. Holds Fire Over Yen Exchange Rate Targets; Bessent Said to Understand Negative Impact on Markets
-
Rents Mark 30-Year-High Rate of Rise; Decrease in Disposable Income May Dampen Personal Consumption
-
Japanese Govt Mulls Raising Number of Cars to be Imported Under Simplified Screen System in U.S. Tariff Negotiations
-
Japan Must Boost Its ‘Indispensability,’ Urges JETRO Chair; Convince United States That Cooperation Will Be Beneficial
-
Japan Presses U.S. to Scrap 25% Auto Tariffs as Ishiba Refuses Partial Trade Deal; No Deal Without ‘Total Rollback’