Outlook for the Nikkei average this week [26-November 2023]

 [Fundamental viewpoint]

Stock indices rose for the week last week in the U.S. market as the prevailing view was that the Fed's interest rate hike phase was over.

Weekly change NY Dow: +1.27% NASDAQ: +0.89% S&P 500: +1.00%.

                                       

On the other hand, medium- to long-term risks include concerns about the prolonged conflict in Ukraine, energy costs, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. In addition, geopolitical risks in East Asia and the Middle East continue to require attention.

The difference in the yield spread between the Japanese and U.S. markets is 5.08 points undervalued in the Japanese market when the revised OECD nominal GDP forecast for 2024 is taken into account. The undervaluation is due to the difference between the S&P 500's P/E ratio of 20.5 and the Nikkei 225's P/E ratio of 14.9, the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.
This means that if the difference in GDP growth between Japan and the U.S. in 2022 is 5.08 points larger than the OECD forecast (Japan is revised downward or the U.S. is revised upward), or if the current year's forecast PER of the Nikkei Index stocks is around 61.7, or if the Nikkei Index is around 138,980 yen, the Nikkei Index will be at the same level as the current Nikkei Index price. 105,350 yen,

 

From a fundamental perspective, the Japanese market can be said to be about 105,350 yen less attractive than the U.S. market. Last week, the weakness in the Japanese market diminished somewhat.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2023 GDP estimate (now +3.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    Last week's NYDow's weekly chart was a positive line. The daily chart is above the 200-day line and the clouds of the Ichimoku Kinko Hyo. The NASDAQ has a positive weekly line. The daily price is above the 200-day line and the Ichimoku cloud. This week, we will focus on whether or not the NY Dow can keep above the 25-day line.

②    As a result of the announcement of quarterly financial results, the forecasted ROE of the Nikkei 225 indexes came in at +8.8%, an improvement of 0.3 percentage points from three months ago. Profit growth was +9.2%, an improvement of +6.9 percentage points from three months ago.

③    U.S. long-term interest rates rose and the interest rate differential between the U.S. and Japan widened from 3.69 to 3.71, but the dollar moved slightly higher against the yen in the range of ¥149 to ¥147. The dollar index fell -0.39% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2024 is expected to be +2.96% for Japan and +3.40% for the U.S., so the Japanese market is 0.44 percentage points inferior in this aspect.

⑤    The third week of November was overbought; the fourth week of November was likely overbought, and overbought is expected this week. Of the five points last week,  ①, ②, and ⑤ were bullish. ①②③⑤ are expected to have an impact.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is undervalued by 0.1 point in the medium to long term in terms of the difference in 200-day divergence from the NASDAQ (about 30 yen when converted to the Nikkei 225). On the other hand, the difference in the 200-day divergence from the NYDow is 4.6 points (about 1,550 yen in terms of the Nikkei average) overvalued in the medium to long term.

 

The strength of the Japanese market versus the NY Dow was extended during the week. The VIX, a measure of U.S. market volatility, declined to a weekly low of 12.5. The Nikkei VI fell to a weekly low of 16.9. Optimistic sentiment continued in both the U.S. and Japanese markets.

 

The Nikkei 225 is above the 9-day and the 25-day lines. This is a "green light" for the short-term trend.

The Nikkei 225 is above chimoku Kinko Chart's cloud, and the Nikkei 225's total divergence is +17.9%The divergence between the Nikkei 225 and the 200-day moving average was +9.1%. Since the three factor is positive, a "green signal" is lit for the medium-term trend.

 

In the U.S. market, the NYDow is above the 9-day line and the 25-day line and the 200-day line. It is above Ichimoku Chart cloud.
The NASDAQ is above the 9-day line and the 25-day line and the 200-day line. It is above the Ichimoku Kinko's cloud.
This is a "green light" in the short term and a "green light" in the medium term.

 

[Outlook for this week]

Looking at the U.S. market from a fundamental perspective, concerns about a global economic slowdown due to the spread of the new coronavirus have receded, but risk factors include inflation and rising interest rates due to the Russia-Ukraine war and economic slowdown due to energy shortages and deteriorating political conditions in the EU, U.S.-China trade friction, financial market turmoil caused by the bursting of the Chinese real estate bubble and credit contraction, and geopolitical risks in the Middle East and East Asia.

 

Recent LIBOR rates have been on the rise, and we continue to be wary of a resurgence of financial instability.

 

Looking at the technical aspects, the U.S. market is in a medium-term up trend and a short-term up trend. The Japanese market is in a medium-term up trend, and the short-term is up trend.

 

Analysis of the foreign exchange market shows that the yen has been weakening since January 2023. This week, we expect the yen to be in the range of 150 to 148 yen.

 

This week in the U.S. markets, PCE prices, personal income and spending, and the ISM manufacturing PMI will be released, as well as speeches by Chairman Powell and Fed officials. In addition, the CB Consumer Confidence Index, revised Q3 GDP growth, new home sales, and Q3 corporate earnings will also be in focus. Globally, speeches by senior officials from the ECB and the Bank of Japan are scheduled. Also of interest will be Eurozone inflation and China's manufacturing and services PMIs.

 

Last week, the Nikkei 225 moved mostly within its expected range. The upside was about 40 yen above the assumed line and the downside was about 80 yen above the assumed line.

This week, the Nikkei 225 is expected to move between Bollinger Band +2σ (currently around 34230 yen) on the upside and Bollinger Band +1σ (currently around 33210 yen) on the downside.

 

This week will be influenced by comments from Fed officials and PCE prices. Volatility is trending lower in both the U.S. and Japanese markets, and the Nikkei 225 is expected to rise moderately.

Outlook for the Nikkei average this week [19-November 2023]

 [Fundamental viewpoint]

In the U.S. markets last week, the release of the Consumer Price Index for October continued to lower long-term interest rates, and stock indexes rose for the week.

Weekly change NY Dow: +1.94% NASDAQ: +2.37% S&P 500: +2.24%.

                                       

On the other hand, medium- to long-term risks include concerns about the prolonged conflict in Ukraine, energy costs, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. In addition, geopolitical risks in East Asia and the Middle East continue to require attention.

The difference in the yield spread between the Japanese and U.S. markets is 4.99 points undervalued in the Japanese market when the revised OECD nominal GDP forecast for 2024 is taken into account. The undervaluation is due to the difference between the S&P 500's P/E ratio of 20.2 and the Nikkei 225's P/E ratio of 14.9, the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.
This means that if the difference in GDP growth between Japan and the U.S. in 2022 is 4.99 points larger than the OECD forecast (Japan is revised downward or the U.S. is revised upward), or if the current year's forecast PER of the Nikkei Index stocks is around 58.6, or if the Nikkei Index is around 131,790 yen, the Nikkei Index will be at the same level as the current Nikkei Index price. 98,210 yen,

 

From a fundamental perspective, the Japanese market can be said to be about JPY98,210 less attractive than the U.S. market. Last week, the weakness in the Japanese market diminished somewhat.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2023 GDP estimate (now +3.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    Last week's NYDow's weekly chart was a positive line. The daily chart is above the 200-day line and the clouds of the Ichimoku Kinko Hyo. The NASDAQ has a positive weekly line. The daily price is above the 200-day line and the Ichimoku cloud. This week, we will focus on whether or not the NY Dow can keep above the 25-day line.

②    As a result of the announcement of quarterly financial results, the forecasted ROE of the Nikkei 225 indexes came in at +8.9%, an improvement of 0.3 percentage points from three months ago. Profit growth was +8.8%, an improvement of +6.2 percentage points from three months ago.

③    U.S. long-term interest rates declined and the interest rate differential between the U.S. and Japan narrowed from 3.81 to 3.69, moving the U.S. dollar to a range of 151 to 149 yen against the yen. The dollar index fell -1.88% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2024 is expected to be +2.96% for Japan and +3.40% for the U.S., so the Japanese market is 0.44 percentage points inferior in this aspect.

⑤    The second week of November was overbought; the third week of November was likely overbought, and overbought is expected this week. Of the five points last week,  ①, ②, and ⑤ were bullish. ①②③⑤ are expected to have an impact.

 

[Technical viewpoint]

Looking at the Japanese market from a technical perspective, the difference in the 200-day divergence rate from the NASDAQ is 0.6 points (about 200 yen when converted to the Nikkei 225) higher in the medium to long term. On the other hand, the difference in the 200-day divergence from the NYDow is 6.1 points (about 2,050 yen in terms of the Nikkei 225) higher in the medium to long term.

 

The strength of the Japanese market versus the NY Dow was extended during the week. The VIX, a measure of U.S. market volatility, declined to a weekly low of 13.8. The Nikkei VI fell to a weekly low of 18.3. Optimistic sentiment continued in both the U.S. and Japanese markets.

 

The Nikkei 225 is above the 9-day and the 25-day lines. This is a "green light" for the short-term trend.

The Nikkei 225 is above chimoku Kinko Chart's cloud, and the Nikkei 225's total divergence is +18.8%The divergence between the Nikkei 225 and the 200-day moving average was +9.4%. Since the three factor is positive, a "green signal" is lit for the medium-term trend.

 

In the U.S. market, the NYDow is above the 9-day line and the 25-day line and the 200-day line. It is above Ichimoku Chart cloud.
The NASDAQ is above the 9-day line and the 25-day line and the 200-day line. It is above the Ichimoku Kinko's cloud.
This is a "green light" in the short term and a "green light" in the medium term.

 

[Outlook for this week]

Looking at the U.S. market from a fundamental perspective, concerns about a global economic slowdown due to the spread of the new coronavirus have receded, but risk factors include inflation and rising interest rates due to the Russia-Ukraine war and economic slowdown due to energy shortages and deteriorating political conditions in the EU, U.S.-China trade friction, financial market turmoil caused by the bursting of the Chinese real estate bubble and credit contraction, and geopolitical risks in the Middle East and East Asia.

 

Recent LIBOR rates have been on the rise, and we continue to be wary of a resurgence of financial instability.

 

Looking at the technical aspects, the U.S. market is in a medium-term up trend and a short-term up trend. The Japanese market is in a medium-term up trend, and the short-term is up trend.

 

Analysis of the foreign exchange market shows that the yen has been weakening since January 2023. This week, we expect the yen to be in the range of 150 to 148 yen.

 

In the U.S. markets this week, following the FOMC minutes, durable goods orders, S&P Global Services Index, manufacturing PMI, and existing and new home sales will be in focus. As the quarterly earnings season draws to a close, Zoom, NVIDIA, and others will be in focus. Internationally, manufacturing and services PMIs for the Eurozone, the U.K., and Japan will be released. Additionally, Japanese inflation will be in focus.

 

Last week, the Nikkei 225 moved above its assumed range. The upper price was about 210 yen above the assumed line and the lower price was about 130 yen above the assumed line.

This week, the Nikkei 225 is expected to move between the Bollinger Band +2σ (currently around 33680 yen) on the upside and Bollinger Band +1σ (currently around 32820 yen) on the downside.

 

This week will be influenced by the FOMC minutes, NVIDIA earnings, and long-term interest rates. Volatility is trending lower in both the U.S. and Japanese markets, and the Nikkei 225 is expected to rise moderately.

Outlook for the Nikkei average this week [12-November 2023]

 [Fundamental viewpoint]

In the U.S. markets last week, stock indices rose for the week as long-term interest rates continued to fall on the back of receding speculation of additional interest rate hikes.

Weekly change NY Dow: +0.65% NASDAQ: +2.37% S&P 500: +1.31%.

                                       

On the other hand, medium- to long-term risks include concerns about the prolonged conflict in Ukraine, energy costs, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. In addition, geopolitical risks in East Asia and the Middle East continue to require attention.

The difference in the yield spread between the Japanese and U.S. markets is 5.09 points undervalued in the Japanese market when the revised OECD nominal GDP forecast for 2024 is taken into account. The undervaluation is due to the difference between the S&P 500's P/E ratio of 19.7 and the Nikkei 225's P/E ratio of 14.7, the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.
This means that if the difference in GDP growth between Japan and the U.S. in 2022 is 5.09 points larger than the OECD forecast (Japan is revised downward or the U.S. is revised upward), or if the current year's forecast PER of the Nikkei Index stocks is around 58.8, or if the Nikkei Index is around 130,030 yen, the Nikkei Index will be at the same level as the current Nikkei Index price. 97,460 yen,

 

From a fundamental perspective, the Japanese market can be said to be about 97,460 yen less attractive than the U.S. market. Weakness in the Japanese market narrowed last week.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2023 GDP estimate (now +3.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    Last week's NYDow's weekly chart was a positive line. The daily chart is above the 200-day line and the clouds of the Ichimoku Kinko Hyo. The NASDAQ has a positive weekly line. The daily price is above the 200-day line and the Ichimoku cloud. This week, we will focus on whether or not the NY Dow can keep above the 25-day line.

②    As a result of the announcement of quarterly financial results, the forecasted ROE of the Nikkei 225 indexes came in at +8.8%, an improvement of 0.6 percentage points from three months ago. Profit growth was +8.2%, an improvement of +5.4 percentage points from three months ago.

③    U.S. long-term interest rates rose, widening the interest rate differential between the U.S. and Japan from 3.66 to 3.81, and the U.S. dollar moved toward a weaker yen in the range of ¥149 to ¥151. The dollar index rose +0.70% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2024 is expected to be +2.96% for Japan and +3.40% for the U.S., so the Japanese market is 0.44 percentage points inferior in this aspect.

⑤    The first week of November was overbought; the second week of November was likely overbought, and overbought is expected this week. Of the five points last week,  ①, ②, and ⑤ were bullish. ①②③⑤ are expected to have an impact.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is undervalued by 0.1 points in the medium to long term in terms of the 200-day divergence from the NASDAQ (about 30 yen when converted to the Nikkei 225). On the other hand, the difference in the 200-day divergence from the NYDow is 5.2 points (about 1690 yen in terms of the Nikkei 225) more expensive in the medium to long term.

 

The strength of the Japanese market versus the NY Dow was extended during the week. The VIX, a measure of U.S. market volatility, declined to a weekly low of 14.2. The Nikkei VI was unchanged at 20.0 for the week. Optimistic sentiment continued in the U.S. market.

 

The Nikkei 225 is above the 9-day and the 25-day lines. This is a "green light" for the short-term trend.

The Nikkei 225 is above chimoku Kinko Chart's cloud, and the Nikkei 225's total divergence is +10.7%The divergence between the Nikkei 225 and the 200-day moving average was +6.6%. Since the three factor is positive, a "green signal" is lit for the medium-term trend.

 

In the U.S. market, the NYDow is above the 9-day line and the 25-day line and the 200-day line. It is above Ichimoku Chart cloud.
The NASDAQ is above the 9-day line and the 25-day line and the 200-day line. It is above the Ichimoku Kinko's cloud.
This is a "green light" in the short term and a "green light" in the medium term.

 

[Outlook for this week]

Looking at the U.S. market from a fundamental perspective, concerns about a global economic slowdown due to the spread of the new coronavirus have receded, but risk factors include inflation and rising interest rates due to the Russia-Ukraine war and economic slowdown due to energy shortages and deteriorating political conditions in the EU, U.S.-China trade friction, financial market turmoil caused by the bursting of the Chinese real estate bubble and credit contraction, and geopolitical risks in the Middle East and East Asia.

 

Recent LIBOR rates have been on the rise, and we continue to be wary of a resurgence of financial instability.

 

Looking at the technical aspects, the U.S. market is in a medium-term up trend and a short-term up trend. The Japanese market is in a medium-term up trend, and the short-term is up trend.

 

Analysis of the foreign exchange market shows that the yen has been weakening since January 2023. This week, we expect the yen to be in the range of 152 to 149 yen.

 

In the U.S. markets this week, the focus will be on the Consumer Price Index for October, with retail sales and speeches by Fed officials also in focus. In addition, producer prices, industrial production, import/export prices, building permits, and housing starts will also be in focus. Earnings season continues, with announcements by Home Depot, Cisco, TJX, Wal-Mart, Applied Materials, and others. Internationally, the focus will be on U.K. inflation, retail sales, and unemployment, as well as China's industrial production, retail sales, and fixed asset investment, plus Japan's third quarter GDP growth rate.

 

Last week, the Nikkei 225 fell below its assumed range. The upside was about 470 yen above the assumed line and the downside was about 80 yen below the assumed line.

This week, the Nikkei 225 is expected to move between Bollinger Band +2σ (currently around 32930 yen) on the upside and Bollinger Band +1σ (currently around 32290 yen) on the downside.

This week will be influenced by developments in the Middle East, U.S. inflation data, and long-term interest rates. Volatility in both the U.S. and Japanese markets is trending lower, and the Nikkei 225 is expected to rise moderately.

Outlook for the Nikkei average this week [5-November 2023]

 [Fundamental viewpoint]

In the U.S. markets last week, stock indices rose sharply for the week as long-term interest rates fell after the FOMC, with many reading no additional monetary tightening.

Weekly change NY Dow: +5.07% NASDAQ: +6.61% S&P 500: +5.85%.

                                       

On the other hand, medium- to long-term risks include concerns about the prolonged conflict in Ukraine, energy costs, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. In addition, geopolitical risks in East Asia and the Middle East continue to require attention.

The difference in the yield spread between the Japanese and U.S. markets is 4.53 points undervalued in the Japanese market when the revised OECD nominal GDP forecast for 2024 is taken into account. The undervaluation is due to the difference between the S&P 500's P/E ratio of 19.3 and the Nikkei 225's P/E ratio of 15.4, the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.
This means that if the difference in GDP growth between Japan and the U.S. in 2022 is 4.53 points larger than the OECD forecast (Japan is revised downward or the U.S. is revised upward), or if the current year's forecast PER of the Nikkei Index stocks is around 50.8, or if the Nikkei Index is around 105,500 yen, the Nikkei Index will be at the same level as the current Nikkei Index price. 73,550 yen,

 

From a fundamental perspective, the Japanese market can be said to be about 73,550 yen less attractive than the U.S. market. Weakness in the Japanese market narrowed last week.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2023 GDP estimate (now +3.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    Last week's NYDow's weekly chart was a positive line. The daily chart is above the 200-day line and within the clouds of the Ichimoku Kinko Hyo. The NASDAQ has a positive weekly line. The daily price is above the 200-day line and within the Ichimoku cloud. This week, we will focus on whether or not the NY Dow can keep above the 25-day line.

②    As a result of the announcement of quarterly financial results, the forecasted ROE of the Nikkei 225 indexes came in at +8.8%, a deterioration of 0.6 percentage points from three months ago. Profit growth was +6.7%, an improvement of +4.0 percentage points from three months ago.

③    U.S. long-term interest rates declined and the interest rate differential between the U.S. and Japan narrowed from 3.96 to 3.66, moving the dollar slightly higher against the yen in the range of ¥151 to ¥148. The dollar index fell -1.42% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2024 is expected to be +2.96% for Japan and +3.40% for the U.S., so the Japanese market is 0.44 percentage points inferior in this aspect.

⑤    The fourth week of October was overbought; the first week of November was likely overbought, and overbought is expected this week. Of the five points last week, ①, ②, and ⑤ were bullish. ①②③⑤ are expected to have an impact.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is undervalued by 0.5 points in the medium to long term in terms of the 200-day divergence from the NASDAQ (about 160 yen when converted to the Nikkei 225). On the other hand, the difference in the 200-day divergence from the NYDow is 4.4 points (about 1410 yen in terms of the Nikkei 225) more expensive in the medium to long term.

 

The strength of the Japanese market versus the New York Dow narrowed during the week. The VIX, a measure of U.S. market volatility, declined to a weekly low of 14.9. The Nikkei VI declined to a weekly low of 20.0. The U.S. market has shifted to an optimistic sentiment.

 

The Nikkei 225 is above the 9-day and the 25-day lines. This is a "green light" for the short-term trend.

The Nikkei 225 is below chimoku Kinko Chart's cloud, and the Nikkei 225's total divergence is +6.0%The divergence between the Nikkei 225 and the 200-day moving average was +5.1%. Since the one factor is positive, a "yellow signal" is lit for the medium-term trend.

 

In the U.S. market, the NYDow is above the 9-day line and the 25-day line and the 200-day line. It is withinnthe Ichimoku Chart cloud.
The NASDAQ is above the 9-day line and the 25-day line and the 200-day line. It is withinn the Ichimoku Kinko's cloud.
This is a "green light" in the short term and a "yellow light" in the medium term.

 

[Outlook for this week]

Looking at the U.S. market from a fundamental perspective, concerns about a global economic slowdown due to the spread of the new coronavirus have receded, but risk factors include inflation and rising interest rates due to the Russia-Ukraine war and economic slowdown due to energy shortages and deteriorating political conditions in the EU, U.S.-China trade friction, financial market turmoil caused by the bursting of the Chinese real estate bubble and credit contraction, and geopolitical risks in the Middle East and East Asia.

 

Recent LIBOR rates have been on the rise, and we continue to be wary of a resurgence of financial instability.

 

Looking at the technical aspects, the U.S. market is in a medium-term down trend and a short-term down trend. The Japanese market is in a medium-term no trend, and the short-term is down trend.

 

Analysis of the foreign exchange market shows that the yen has been weakening since January 2023. This week, we expect the yen to be in the range of 148 to 150 yen.

 

This week's U.S. markets will include speeches by Fed officials, the release of the University of Michigan's Factor Indices of Consumer Confidence, and trade statistics. Also of note are earnings announcements from Berkshire Hathaway, Gilead Sciences, Uber, and Walt Disney. Internationally, Chinese inflation, new loans, and trade data will be in focus. In addition, the Reserve Bank of Australia will make its interest rate decision and the U.K. will release its third quarter GDP growth figures.

 

Last week, the Nikkei 225 moved above its assumed range. The upper price was about 640 yen above the assumed line and the lower price was about 190 yen above the assumed line.

This week, the Nikkei 225 is expected to move between the Bollinger Band +3σ (currently around 33050 yen) on the upside and Bollinger Band +1σ (currently around 31990 yen) on the downside.

 

This week is likely to be affected by the situation in the Middle East and the movement of long-term U.S. interest rates. Volatility is declining in both the U.S. and Japanese markets, and the Nikkei 225 is expected to move higher.