Japanese stocks to open lower, yen eyes pre-intervention lows

2026-06-07

Japanese stocks are likely to be sold first, and the Nikkei average is expected to remain weak. In addition to concerns about overheated investment in artificial intelligence (AI)-related stocks, the market is likely to take over the declines in U.S. shares on the 5th, when expectations of a U.S. Federal Reserve rate hike following the May U.S. employment report weighed on sentiment. Against the backdrop of higher U.S. yields on expectations of a rate hike, selling of the yen and buying of the dollar are also likely to continue.

Peru presidential election runoff

In Peru, South America, a presidential runoff will be held on the 7th. The contenders are right-wing Keiko Fujimori, the eldest daughter of the late former President Alberto Fujimori, and left-wing former Trade and Tourism Minister Roberto Sanchez. The assessment of 'Fujimori', which still holds influence in Peruvian politics, is once again a key issue.

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