Last week, warnings were issued about a PHP vulnerability, and even Prime Minister Takaichi shared the alert on X.
Since it’s impossible to predict what kind of attacks might occur or when, the general sentiment seems to be “better to play it safe for now.”
With the Nikkei 225 down 1,713 yen and U.S. long-term interest rates falling to 5.07%, the dollar-yen exchange rate briefly dipped into the upper 156-yen range.

Prior to this PHP-related risk-off sentiment, there were also credit concerns surrounding U.S. AI companies. However, unlike scheduled economic indicator releases or central bank events, this situation lacks a clear end in sight—so will it drag on?
Tech stocks are being sold off despite reporting strong earnings.
It’s unclear whether there has been excessive investment in AI relative to the growth the market expects, but selling pressure on AI-related stocks continues, and the current market sentiment has shifted toward risk aversion.

This week is packed with central bank policy meetings.
On Wednesday, the 28th, New Zealand, Canada, and the U.S. will hold policy meetings; on Thursday, the 29th, the EU will follow; and on the 30th, the last business day of the month, the Bank of Japan will hold its policy meeting.
While Japan, the U.S., and the EU are expected to hold off on rate hikes—a move already priced into the market—attention will likely focus on the central bank governors’ comments during their press conferences.

In addition, next Tuesday (November 3) marks the U.S. midterm elections.
If the Democrats were to take control of both the House and the Senate, investment in data centers would slow considerably, and the possibility of a U.S. recession would come into view.

While the U.S. has been driving the dollar higher through its attacks on Iran, a Trump defeat could trigger a weakening of the dollar.
It appears we are approaching a turning point in history as we head into next week.