Tokyo stocks are expected to show wild fluctuations for now, reflecting jitters in the U.S. stock market and currency trading.
To help the Tokyo stock market bottom out and turn upward, downside risks in the U.S. market need to be wiped out. U.S. companies' results in the April-June quarter, which will be released beginning mid-July, will provide such an opportunity by confirming the improvement of earnings.
While U.S. macroeconomic data are testifying to a pickup in economic activity and corporate earnings, U.S. stocks are showing downward trends due largely to balance-sheet adjustments at U.S. firms.