Japan stocks seen holding firm on the 1st, supported by Micron's strong earnings despite weak U.S., European markets

The Nikkei is expected to hold firm on Oct 1. In the prior session, European equities closed in negative territory, with Germany's DAX, France's CAC 40, and the UK's FTSE 100 all finishing lower. U.S. markets also fell, with the Dow Jones Industrial Average and S&P 500 declining. While the Nasdaq Composite edged slightly higher, the Philadelphia Semiconductor Index (SOX) ended little changed. Rising U.S. long-term interest rates weighed on sentiment, with the 10-year Treasury yield briefly climbing to about 5.3%, its highest level in about 19 years. Sep ADP employment figures showed a gain of 90,000 jobs, accelerating from the prior reading (revised to 36,000). The Aug PCE price index rose 3.4% year-on-year, matching the prior month's pace, while final Q2 GDP came in at an annualized 2.2% growth, surpassing market expectations of 1.5%. Persistent inflationary pressures were also fueled by elevated crude oil prices linked to tensions involving Iran. After market close, closely watched earnings from Micron Technology came in strong, matching market expectations. Revenue and net profit both surged in the Jun-Aug quarter, and Micron's revenue outlook for the Sep-Nov quarter also topped forecasts. However, the stock saw volatile swings in after-hours trading. Tokyo markets are expected to remain firm on Oct 1. While lackluster U.S. and European equities serve as a drag, Micron's strong results should provide underlying support. Nevertheless, with mixed factors, investors are likely to refrain from taking decisive positions.

On Sep 30, the U.S. stock market saw the Dow Jones Industrial Average fall 443.87 dollars from the prior session to close at 50,906.05 dollars, marking its third straight decline. The Nasdaq Composite rose 63.52 points to 26,861.06.

On the calendar on Oct 1, the Bank of Japan's Tankan survey and Summary of Opinions from its Monetary Policy Meeting (held Sep 17-18) will be in focus. Other domestic releases include weekly data on cross-border securities transactions, and Sep new vehicle and mini-vehicle sales figures. Overseas, Chinese and Hong Kong markets will be closed. In the U.S., the Sep manufacturing PMI final reading, Sep ISM Manufacturing Index, and Aug construction spending are scheduled, along with earnings from Nike .

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.