TOKYO (Reuters) – Today’s Tokyo stock market is expected to experience weak price movements. In response to the previous day’s drop in US stocks and the appreciation of the yen, the overall market conditions are favorable for profit-taking selling. With the market’s biggest focus on NVIDIA (NVDA.O), opens new tab, a growing sense of caution ahead of its financial results, selling due to position adjustment is likely to prevail.
The expected range for the Nikkei average is 38,000 yen to 38,400 yen.
The US stock market closed on the 20th after the holidays, with the three major stock indexes declining. Nvidia, which is scheduled to report its results on the 21st, closed down 4.35%, putting pressure on the Nasdaq. Other semiconductor stocks also sold off, with the Philadelphia Semiconductor Index (.SOX), opens new tab down 1.56%.
Nvidia stock has risen 40% since the beginning of the year on hopes surrounding artificial intelligence (AI), making it the third-highest market capitalization of any U.S. company. Last year’s annual increase rate was 3.3 times. Investors will be waiting to see whether the company’s high valuation is justified by the company’s financial results.
Regarding NVIDIA, Ichiro Asai, deputy general manager of investment information at SBI Securities, said, “Even if the financial results are good, there is a risk of being pushed by profit-taking selling, and there is a risk of turmoil.The Nikkei Stock Average is rising led by semiconductor-related stocks. Therefore, a decline in the company’s stock price is likely to weigh on it.”
The current dollar/yen exchange rate is in the 149.90 yen range, up from 150.40 yen at the end of the previous day. The March Chicago Nikkei futures contract (denominated in yen) was 38,295 yen, lower than the spot closing price. The Nikkei 225 average is expected to continue falling due to the decline, but after a round of selling, it is likely that there will be some pushback buying.
Today, domestic trade statistics for January and the number of foreign visitors to Japan will be released. In the US, in addition to Nvidia’s financial results, the US FOMC meeting minutes for January 30-31 are scheduled to be released.
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