The Tokyo stock market is expected to remain under selling pressure on the 31st, with the Nikkei Stock Average likely to extend its decline for a fourth consecutive day. While the previous session saw a sharp intraday drop of over 2,800 yen in volatile trading, the market later showed resilience amid firm U.S. stock index futures. However, renewed selling pressure is anticipated today. European markets on the previous day showed mixed results, though major indices in top GDP-ranked countries generally demonstrated strength, with Germany's DAX rising 1.2%. While caution persisted due to heightened tensions in the Middle East, buying emerged in the latter half of trading as investors monitored a robust U.S. stock market. The release of Germany's Consumer Price Index (CPI) eased concerns about early rate hikes by the ECB, with long-term interest rates across Europe trending lower?a development viewed positively. The U.S. stock market saw the Dow Jones Industrial Average rise sharply in early trading after President Trump posted on his social media that Iran had agreed to most of the 15-point peace proposal presented by his administration, sparking hopes for an end to military conflict. However, market volatility remained, with the Dow turning negative during the session. WTI crude oil futures remained elevated above $102 per barrel, sustaining concerns about cost-push inflation and prompting profit-taking at higher levels. Reports that the U.S. is preparing for potential ground operations in Iran also dampened buying sentiment. Among individual stocks, Micron Technology fell approximately 10%, with semiconductor-related stocks leading declines and the Philadelphia Semiconductor Index (SOX) plunging over 4%. Following this trend, Tokyo's market may see increased selling pressure on major semiconductor stocks, potentially exacerbating the Nikkei's decline. While bargain-hunting could limit losses after initial selling subsides, a recovery into positive territory appears unlikely.

In the U.S. stock market on the 30th, the Dow Jones Industrial Average edged up 49.50 points to 45,216.14, posting a modest rebound after three days of declines. The Nasdaq Composite Index fell 153.72 points to 20,794.64.

On the economic calendar for today: March Tokyo area Consumer Price Index (CPI), February unemployment rate, February job openings-to-applicants ratio, February preliminary industrial production, February commercial sales statistics, February automobile export data, February construction machinery shipments, and February housing starts statistics. Overseas releases include: March China Manufacturing Purchasing Managers' Index (PMI), March China Non-Manufacturing PMI, March Eurozone Harmonised Index of Consumer Prices (HICP) preliminary reading, January U.S. S&P CoreLogic Case-Shiller Home Price Index, March Chicago PMI, March U.S. Consumer Confidence Index, and February U.S. Job Openings and Labor Turnover Survey (JOLTS).

Source: MINKABU PRESS