The Tokyo stock market on the 2nd is expected to see buying dominate amid mixed sentiment, with the Nikkei Stock Average anticipated to continue its upward trend. The previous session saw a record-breaking surge of over \2,600, rebounding for the first time in five days, and investor funds are likely to flow robustly into the market again today. However, upside momentum may be limited as short-covering buying, which drove the previous day's rally, appears to have run its course. Since U.S. President Trump indicated he would end military operations against Iran without waiting for the reopening of the Strait of Hormuz, concerns over Middle East tensions have receded, and global stock markets continue to experience a rapid rebound from risk-off sentiment. European stock markets on the previous day rose across the board, directly following the broad gains in Asian markets. Germany's DAX index, which had fallen to its lowest level in about a year on the 27th of the previous week, gained 2.7% on the day, marking its third consecutive rise and suggesting a near-term bottom with a gap-up opening. Defense-related stocks continued to attract buying interest. With long-term interest rates generally declining across European countries, the relative overvaluation of equities has also eased. In the U.S. stock market, the Dow Jones Industrial Average at one point rose by more than 460 dollars. On the same day, Trump posted on his social media platform Truth Social that "Iran's president just called for a ceasefire," and while slightly changing his stance, stated he would "consider a ceasefire if the Strait of Hormuz, which remains effectively blockaded, is opened and free navigation is restored." He also mentioned an early withdrawal from Iran in an interview with Reuters. Today, President Trump is scheduled to address the American people at 9:00 p.m. local time, in what is expected to resemble a victory declaration. In today's Tokyo market, risk-on sentiment is likely to continue in early trading, but the market may be swayed by news headlines regarding President Trump's speech and movements in U.S. stock index futures in response, potentially creating a more cautious atmosphere unlike the previous day.

In the U.S. stock market on the 1st, the Dow Jones Industrial Average rose 224.23 dollars to 46,565.74, continuing its upward trend. The Nasdaq Composite Index gained 250.31 points to 21,840.94.

On the economic calendar today, Japan will release March monetary base figures, weekly securities investment data, 10-year government bond auction results, and February fiscal fund balance with the private sector. Overseas, weekly U.S. initial jobless claims and February U.S. trade balance will be released. Markets in the Philippines and Israel are closed.

Source: MINKABU PRESS