The Tokyo stock market on the 3rd is likely to see broad-based buybacks centered on major stocks, with the Nikkei Stock Average expected to rebound. In recent days, highly volatile market conditions have persisted. While the previous day saw a sharp decline of over \1,200 after an early morning rally, today risk-taking sentiment is expected to prevail despite continued instability. European stock markets were generally weak the previous day, with Germany's DAX and France's CAC 40 both declining for the first time in four days. Crude oil prices surged significantly, prompting position-adjustment selling. However, after the initial sell-off, bargain hunting and short covering emerged, causing markets across the region to resist further declines. The UK's FTSE 100 ended trading in positive territory. Market sentiment improved as investors took cues from the strong performance of U.S. equity markets. U.S. President Trump, in a speech regarding military action against Iran, stated that the U.S. would intensify attacks on Iran over the next two to three weeks, dampening hopes for an early resolution. With no signs of Iran's retaliatory attacks easing, WTI crude oil futures surged to the upper $113 per barrel range. However, while the Dow Jones Industrial Average fell by more than 600 points at one point, it quickly reversed its losses and briefly turned positive. This appeared to be driven by reports that Iran was collaborating with Oman on a draft agreement to monitor vessels passing through the Strait of Hormuz. Trading was also limited by investors' desire to assess the March U.S. employment report scheduled for release on the 3rd, as well as the fact that the U.S. stock market would be closed on the 3rd. The tech-heavy Nasdaq Composite Index ended trading modestly higher. In the Tokyo market, the Nikkei Average is likely to rebound as short-term traders engage in buybacks following the resilience of U.S. equities, though intraday trading may be swayed by news headlines regarding the Middle East.

In the U.S. stock market on the 2nd, the Dow Jones Industrial Average fell 61.07 points to 46,504.67, declining for the first time in four days. The Nasdaq Composite Index rose 38.23 points to 21,879.18.

On the calendar for today: Bank of Japan current account balance projection for April, three-month Treasury bill auction, output gap and potential growth rate data. Internationally: March Caixin China non-manufacturing Purchasing Managers' Index (PMI), March employment statistics release. Note that due to Good Friday, the U.S. stock market as well as markets in Hong Kong, Taiwan, the Philippines, Singapore, Indonesia, India, and other Asian countries will be closed.

Source: MINKABU PRESS