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Sensex 74,459.53 +0.42%Nifty 50 23,053.10 +0.51%₹ / $ 94.93

EconomyMarkets

Tokyo set to open 1.5% lower as Wall Street's tech rout and oil above $113 hang over Dalal Street

Early calls point to a weak start in Japan and a flat one in Hong Kong on Monday, after Friday's slide on Wall Street. Indian shares open with Brent near a four-year high and the US vote a day away.

From the editorial desk · MumbaiPublished
The Tokyo Stock Exchange building in Tokyo (file photo)
The Tokyo Stock Exchange building in Tokyo (file photo)Photo: Syced / Wikimedia Commons, CC0

Key points

  1. The Nikkei 225 is projected to open down 960 points at 62,330.
  2. Brent crude ended Friday above $113 a barrel, up more than 2%.
  3. The Nifty 50 starts from 23,053.10, with 22,844 seen as first support.

Asian markets are set for a weak start to the week, with early calls pointing to a sharp fall in Tokyo and a flat open in Hong Kong after Wall Street’s tech-led slide on Friday. Indian shares open at 9:15 am into the same mood, with crude oil close to a four-year high and the US midterm elections due on Tuesday.

Monday’s opening call has the Nikkei 225 down 960 points, or 1.5%, at 62,330, and the Hang Seng off 37 points at 23,257. Tokyo already fell 2.1% on Friday to 63,290 and lost 5.2% in October.

On Friday the Nasdaq dropped 2.9% to 25,437, the S&P 500 lost 1.8% and the Dow fell 1.1%, as investors turned on the big AI stocks after weak results. “We’re moving out of the hopes and dreams phase of the AI trade and into the ‘show me’ phase,” said Joe Tigay of Equity Armor Investments. Seoul’s Kospi fell 3.48% on Friday and ended October down 16.2%, and foreign investors pulled a record NT$994.3 billion out of Taiwan’s market during the month.

Oil is the bigger worry for India. Brent ended Friday above $113 a barrel, up more than 2% on the day. “Traders will remain focused on oil flows out of the Middle East and the likely escalation by US and allied forces,” said Dennis Kissler of BOK Financial. Qatari officials held more than 12 hours of talks in Tehran over the weekend, while the US administration has warned allies in the region to prepare for possible further action against Iran after the midterms.

In Japan, the central bank held its rate at 1.25% by an 8-1 vote on Friday and raised its inflation forecast. China’s official manufacturing purchasing managers’ index slipped to 49.3 in October from 50.1, back below the line that separates growth from contraction.

At home, the Nifty 50 closed Friday at 23,053.10, up 0.51%, and the Sensex at 74,459.53. Analysts put first support for the Nifty at 22,844 and resistance near 23,262. ITC reports its results on Monday.