Nikkei Eyes Return to 70,000; Yen Marks 160 as Key Level

2026-08-16

Market Trends

The Nikkei average in the week of Aug. 17-21 is likely to test a return to 70,000 for the first time in about a month and a half. Following earnings results for listed companies for April-June 2026, buying is broadening beyond stocks related to artificial intelligence (AI) and semiconductors.

Foreign Exchange and Broader Buying

The yen is being watched at 160 per dollar as a psychological line, while lingering caution over possible intervention remains. In the stock market, interest is gradually shifting from AI- and semiconductor-related shares, which have drawn most of the attention until now, to other sectors.

GDP Release and Domestic Demand

The Cabinet Office will release preliminary gross domestic product (GDP) data for April-June on the 17th. Private consumption and capital expenditure have remained firm, and the market broadly expects the economy to post positive growth for a third straight quarter. Crude oil prices have risen on worsening conditions in the Middle East, but government gasoline subsidies have curbed the expansion of the burden.

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