Today's stock market outlook = Buying ahead, supported by higher stock prices and a weaker yen after U.S. employment statistics. Also in view is the 0.04 million yen mark.

October 7, 2024, 8:07 AM GMT+9 (excerpted)

In today's Tokyo stock market, it is expected that buying will take the lead. In the U.S. market, the strong employment statistics from the previous week resulted in stock price increases beyond market expectations, leading to higher stock prices and a weaker yen, and a favorable trend is expected. A wide range of stocks such as high-tech, export-related, and financial stocks are expected to be actively traded. The possibility of the Nikkei average reaching the 40,000 yen level is also considered.
The expected range of the Nikkei average is ¥39,200-¥40,000.

The Nikkei average is expected to be led by buying in response to a significant increase in futures. The temporary rise of the Dollar/Yen to the 149 yen range is likely to be a tailwind for export-related stocks. In addition, the rise of the Philadelphia Semiconductor Index (SOX) in the US market could support domestic related stocks, while the increase in long-term US interest rates could support bank and financial stocks.
Prime Minister Shigeru Ishiba has indicated his intention to dissolve the House of Representatives on the 9th, making the 'election is a buy' sentiment more likely. It is also likely that showing a policy to exclude members who were heavily penalized internally for political funding issues from the Lower House election could boost such speculations.