Tokyo Stocks Likely to Stay Weak Next Week
14:28 JST, October 21, 2023
TOKYO (Jiji Press) — Tokyo stocks are expected to continue moving on a weak note this week, with investors remaining worried about tensions in the Middle East and rising U.S. interest rates, market sources said Friday.
Last week, the benchmark Nikkei 225 index dived 1,056.63 points, or 3.27%, to end at 31,259.36.
The Tokyo market took a heavy blow from strong U.S. economic indicators dampening expectations that the Federal Reserve would put an end to its interest rate hikes.
Growing concerns over the Israel-Hamas war and the possibility of the conflict expanding to other Arab countries also spurred risk-adverse trading.
This week, the Nikkei would move between 30,500 and 32,000, analysts and brokers said.
“The market may see headwinds grow to a maximum level amid intensified worries about the possibility of the Mideast situation going worse and interest rates climbing higher,” an official at a major securities firm said.
Meanwhile, an official at a midsize securities firm suggested that the market would struggle for direction ahead of policy meetings by the Fed and the Bank of Japan the following week.
Brokers also pointed out that selective trading in companies releasing earnings reports would be vigorous with the reporting season for major Japanese firms coming into full swing.
Players are expected to react sensitively to announcements of surprising earnings figures and shareholder returns, they noted.
"Business" POPULAR ARTICLE
-
Japanese Companies Increasing Efforts to Hire Foreign Students; Firms, Local Governments Help Them Acquire Skills to Find Jobs in Japan
-
Japan’s Casio to Launch Durable Clothing Range Inspired by G-Shock Brand; Company to Debut Durable T-Shirt in Late August
-
Insufficient Rice Supply Hits Japan; Sever Heat, Rising Demand from Inbound Tourist Among Factors
-
Japanese Firm Hitachi to Release Vacuum Using AR That Turns Cleaning Into a Game; Stressful Cleaning May Become More Enjoyable
-
Sony to Open New Brand Complex Building in Tokyo’s Ginza Next Year; ‘Ginza Sony Park’ to Serve as Brand Hub for Entertainment Businesses
JN ACCESS RANKING
- Nankai Trough Megaquake Tsunami could Hit in 2 Minutes; Japan Authorities Urge Caution after Recent Earthquake
- Typhoon Shanshan Forms, Slowly Moves Toward Japan; Govt Says Typhoon No. 10 Likely to Approach Japan Next Week
- Typhoon Ampil Approaching Japan
- Tokyo Companies Prepare for Ashfall From Mt. Fuji Eruption; Disposal Of Ash, Possibly at Sea, A Major Challenge
- Shizuoka Pref. City Offers Foreigners Free Japanese Language Classes; Aims to Raise Non-Natives to Daily Conversation Level