Key Facts
• June 23: Japanese stocks expected to decline for the third consecutive session.
• U.S. attack on Iran raises inflation and geopolitical risk concerns, impacting domestic demand stocks.
• Mining and trading companies likely to rise due to higher crude oil prices.
• Dollar strength and yen weakness may support export-related sectors like automobiles.
• Analyst predicts U.S.-Iran conflict unlikely to prolong due to military capability disparity.
• Tokyo stocks may recover losses or turn positive later in the day due to yen weakness.
• Tokyo Metropolitan Assembly election results expected to have minimal impact on stock market.
• Market previously anticipated the ruling Liberal Democratic Party would not win the election.
Summary
Japanese stocks are projected to decline slightly for the third consecutive session on June 23, driven by concerns over inflation and geopolitical risks following a U.S. attack on Iran. Domestic demand stocks are expected to face selling pressure, while mining and trading companies may benefit from rising crude oil prices. The yen’s weakness against the dollar could provide support to export-related sectors, including automobiles. Analysts suggest the U.S.-Iran conflict is unlikely to be prolonged due to the significant disparity in military capabilities. Additionally, the Tokyo Metropolitan Assembly election results are anticipated to have little impact on the stock market, as the ruling Liberal Democratic Party’s loss was already expected. Despite a weak opening, yen depreciation may help Tokyo stocks recover losses or even turn positive later in the day.
