Tokyo stocks are expected to extend their upward trend on the 9th, with the Nikkei Stock Average poised to rise for a fifth consecutive session amid broad-based buying interest in blue-chip and other shares. Despite posting a record surge of nearly \2,900 the previous day, the market is expected to absorb profit-taking by short-term traders and maintain resilient price action. Risk appetite dominated Asian trading hours the previous day, with European markets also rallying across the board. Germany's DAX surged over 5%, with other major markets also posting significant gains. A U.S.-Iran agreement on a two-week immediate ceasefire averted further escalation in the Middle East, sending crude oil prices sharply lower from elevated levels and easing inflation concerns. A broad decline in long-term interest rates also accelerated fund inflows into equity markets. The Dow Jones Industrial Average rose more than 1,400 points at its peak. Investor sentiment turned sharply bullish following the extension of the U.S.-Iran negotiation deadline and an agreement on an immediate ceasefire conditional on reopening the Strait of Hormuz. Short covering contributed to the overall market rally, with the tech-heavy Nasdaq Composite also posting substantial gains. The Philadelphia Semiconductor Index (SOX) surged over 6%. As the global risk-off unwind continues, the Tokyo market is likely to attract buying from overseas investors with renewed risk appetite. However, gains may be relatively limited as market participants await the options expiration (SQ) calculation tomorrow, the U.S. PCE deflator for February due tonight Japan time, and the U.S. CPI for March scheduled for release tomorrow. Developments in the Middle East warrant continued close attention, as any new headlines could trigger volatile price swings.

In the U.S. stock market on the 8th, the Dow Jones Industrial Average surged 1,325.46 points to 47,909.92, while the Nasdaq Composite rose 617.14 points to 22,634.99.

On the economic calendar for the day, Japan will see the release of weekly cross-border securities transaction data, auctions of 6-month Treasury bills and 5-year government bonds, March office vacancy rates, the March consumer confidence survey, and March machine tool orders. Overseas, the U.S. will release weekly initial jobless claims, February personal income and personal consumption expenditures (including the PCE deflator), February wholesale inventories and sales, and will hold an auction of 30-year Treasury bonds.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.