Japan Morning Briefing: What to Watch on September 24, 2026
Tokyo investors face a cautious start to Thursday’s session as geopolitical tensions and rising yields weighed on Wall Street overnight. With USD/JPY holding near ¥157.42, exporters remain in focus while diplomatic developments between major powers add uncertainty to risk sentiment.
Wall Street Weakness Sets Cautious Tone
US markets closed broadly lower Wednesday, with the S&P 500 dropping 0.72% to $767.81, the Nasdaq 100 falling 0.84% to $741.21, and the Dow declining 0.71% to $514.30. Rising oil prices and Treasury yields pressured equities as investors digested escalating geopolitical tensions. Iran’s President Pezeshkian accused Trump of a “bullying mentality” ahead of potentially tense US-China talks, while Iranian officials indicated significant gaps remain in US-Iran peace negotiations.
Yen Weakness Supports Export Giants
The USD/JPY pair trading at ¥157.42 continues to provide tailwinds for Japan’s major exporters. Toyota, Sony, and other multinational corporations should benefit from the weaker yen, which enhances overseas earnings when converted back to Japanese currency. However, the elevated exchange rate also raises concerns about potential intervention from Japanese authorities, creating a delicate balance for currency-sensitive sectors.
Key Themes and Sectors to Monitor
Technology stocks warrant close attention following mixed signals from the AI sector, with OpenAI and Anthropic CEOs pushing for international cooperation at the UN. Meanwhile, a rare Microsoft bear’s warming stance suggests potential shifts in tech sentiment. Energy-related names may see volatility given rising oil prices, while defensive sectors could attract flows amid geopolitical uncertainty. NISA investors should consider the currency impact on international holdings and potential opportunities in domestically-focused sectors that benefit from yen weakness.
Watch for any official commentary on currency levels and monitor how Japanese equities respond to the overnight risk-off sentiment in global markets.
This briefing is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.