Tokyo stocks seen opening higher after U.S. rebound and easing rate pressure

  • Tokyo stocks received support from Wall Street gains and a decline in long-term Treasury yields.
  • 64,735 was the Chicago Nikkei 225 futures settlement, up 385 points from Osaka.
  • The U.S. employment report is due at the end of the week.

Tokyo stocks are expected to open higher on September 3 after gains on Wall Street and a pause in the rise of long-term U.S. Treasury yields. Chicago Nikkei 225 futures settled at 64,735, up 385 points from the Osaka session, suggesting the cash market could open near that level. U.S. equities rebounded on September 2 for the first time in four sessions as New York Fed President John Williams pointed to slowing inflation and the August ADP employment report showed 38,000 new jobs, below the 49,000 consensus. The 10-year Treasury yield fell 0.02 percentage points to 4.78%, reducing pressure from interest rates. In Japan, semiconductor and artificial-intelligence shares that have recently faced volatile trading are expected to attract dip-buying, although trading may remain restrained ahead of the U.S. employment report due later in the week. The dollar-yen pair moved from the 160 level into the upper 158 range as the yen strengthened, partly reflecting Bank of Japan board member Hajime Takata's reference to a possible September rate hike.

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