Japanese Market Expected to Hold Firm as US Rate Hike Expectations Recede

The Japanese stock market is expected to hold firm this week due to receding expectations for US interest rate hikes. The Nikkei Stock Average is anticipated to trend higher, with funds moving back into artificial intelligence and semiconductor-related stocks.

The US Federal Reserve's rate hike expectations have decreased following the release of underwhelming US employment statistics on August 7th. This has contributed to a tailwind for the Japanese market.

In South Korea, policymakers will be under scrutiny as the country grapples with high household debt and a tough employment situation. The Bank of Korea's financial market trends report for July is expected to reveal an increase in outstanding household loans.