The Tokyo stock market on the 6th is expected to see volatile trading around the previous Friday's close, as bullish and bearish views remain divided. With lingering uncertainty in the market environment, trading is likely to be swayed by news flows during the session, potentially dipping below the \53,000 level while also seeing buying activity emerge at times. Against this backdrop, market participants are likely to remain sensitive to movements in crude oil futures, which have recently surged above $110 per barrel. European and U.S. stock markets were generally closed on Friday for the Good Friday holiday. In the U.S., market attention was focused on the March employment report, which showed stronger-than-expected non-farm payrolls and unemployment figures. Payrolls increased by 178,000, significantly exceeding the consensus estimate of 60,000, dampening expectations for an early rate cut by the Federal Reserve. In response, the U.S. Treasury market, which had a shortened trading session, saw long-term bonds sold off, pushing the 10-year Treasury yield higher. President Trump has maintained a hardline stance toward Iran, keeping geopolitical risk concerns elevated. Trump has warned that unless the Strait of Hormuz is reopened by the night of the 7th, he will order the destruction of critical infrastructure including power plants and bridges?a factor likely to weigh on the Tokyo market today. Rising crude oil prices could fuel cost-push inflation, which combined with yen depreciation, raises the risk of stagflation and would be a headwind for equities. In Japan, near-term movements in the newly issued 10-year government bond yield are likely to be key.

On the economic calendar, Japan will release the Bank of Japan's Regional Economic Report (Sakura Report) for April. Overseas, the U.S. will publish the Institute for Supply Management (ISM) Services Purchasing Managers' Index for March. Markets in China, Taiwan, and Thailand will be closed.

Source: MINKABU PRESS