Points for this week
The outlook for Japanese stocks this week is for continued decline. As expectations of an early interest rate cut in the US recede and uncertainty about financial policy looms, pressure on Japanese stocks is likely to increase. The increasingly tense situation in the Middle East is also likely to be seen as a negative factor. Furthermore, economic indicators with significant impact on financial policy domestically and internationally will be released. If US price indices unexpectedly rise or if real wages in Japan continue to decline, investor sentiment may deteriorate, becoming a drag on the market. Currently, speculations are conflicting over the timing and frequency of interest rate hikes in the US.Economic indicatorsand, Messages from central banksare expected to have a significant impact on long-term interest rates and exchange rates.
In the USA this week, the March Consumer Price Index (CPI) and Producer Price Index (PPI) are scheduled to be released, attracting market participants' attention. If the CPI exceeds expectations for the third consecutive month in January and February, the cautious attitude of the US monetary authorities towards early rate cuts will strengthen, leading to a rise in US interest rates and a decline in US stocks, which could also increase selling pressure on Japanese stocks. However, any deviation from the consensus is already considered to be priced in the market. On the other hand, the rise in US interest rates may contribute to a stronger dollar...