The Tokyo stock market is expected to see broad-based buying on the 1st, with the Nikkei Stock Average poised for a sharp rebound after five sessions. Although the index plunged more than 820 points the previous day after volatile trading, today's session could see a recovery of double that magnitude, potentially pushing the index back toward the 53,000 level. It wasn't only Japanese equities that sold off on the previous day?Asian markets broadly searched for lower ground, but sentiment shifted during European trading hours. Major European indices including Germany's DAX, France's CAC 40, and the UK's FTSE 100 all rose, while the STOXX Europe 600 index also edged higher. Reports that U.S. President Trump "mentioned ending military operations against Iran without waiting for the reopening of the Strait of Hormuz" sparked relief, triggering short covering in defense-related and automotive stocks. This buyback momentum accelerated sharply during the latter half of U.S. trading. With concerns over prolonged Middle East tensions having weighed heavily on markets, growing expectations that the military conflict was moving toward resolution prompted those holding short positions to unwind their trades. The Dow Jones Industrial Average had declined for five consecutive weeks through the previous week, with the drop from its highs exceeding 10%?a threshold suggesting entry into correction territory?but bargain hunting also appeared to emerge. Buying was particularly strong in technology stocks, with the Nasdaq Composite rising 3.8%, significantly outpacing the Dow, while the Philadelphia Semiconductor Index (SOX) surged 6.2%. The Tokyo market is widely expected to follow through on Wall Street's sharp recovery, with the Nikkei poised for a robust turnaround. Having shed nearly 2,700 points over the previous four trading days, the index is likely to see active two-way trading in the 52,500 to 53,000 range?roughly a 50% retracement of the recent decline.

In the U.S. stock market on the 31st, the Dow Jones Industrial Average rose 1,125.37 points to close at 46,341.51, marking a second consecutive day of sharp gains. The Nasdaq Composite advanced 795.98 points to 21,590.62.

On the economic calendar for today, Japan will release the Bank of Japan's Tankan survey for March, new vehicle sales for March (from the Japan Automobile Dealers Association), and mini-vehicle sales for March (from the Japan Mini Vehicles Association). Overseas, data include China's Caixin manufacturing PMI for March, the eurozone unemployment rate for February, the ADP National Employment Report for March, U.S. retail sales for February, the ISM manufacturing index for March, and U.S. business inventories for January.

Source: MINKABU PRESS