The Tokyo stock market is likely to see buying concentrated in blue-chip stocks on the 10th, with the Nikkei Stock Average expected to rebound into the \56,000 range. In European markets the prior session, stocks closed mixed, with Germany's DAX falling more than 1%, while France's CAC 40 and the UK's FTSE 100 also ended slightly lower. Investors remained cautious amid lingering uncertainty over the Middle East situation, with position-lightening prevailing. Meanwhile, U.S. stocks came under selling pressure in the first half of trading but attracted increased buying in the latter half. Lebanon ? which has been under military attack ? reportedly agreed to direct negotiations with Israel on the day, improving investor sentiment. Buying was further supported by reports that President Trump urged Israeli Prime Minister Netanyahu to scale back military operations in Lebanon. The February PCE deflator released on the day rose 2.8% year-on-year, in line with market consensus, while weekly U.S. initial jobless claims came in at 219,000, above market expectations. Although the higher-than-expected jobless claims point to a softening labor market, the market appears to have interpreted this positively as it could bolster the case for Fed rate cuts. In the Tokyo market, the Nikkei fell more than 400 points the prior session with subdued trading throughout and was forced to close near its lows, but bargain hunting is likely to take the lead today following the Wall Street rally. That said, the Nikkei's upside may be capped ahead of the release of the March U.S. Consumer Price Index (CPI) and other key data.

In the U.S. stock market on the 9th, the Dow Jones Industrial Average rose 275.88 points to 48,185.80, extending gains for a second consecutive session. The Nasdaq Composite gained 187.42 points to 22,822.41.

On today's schedule, it is the Special Quotation (SQ) calculation day for April stock index options. Also scheduled are March lending and deposit trends, the March Corporate Goods Price Index (CGPI), and a three-month Treasury bill auction. Overseas releases include China's March CPI and PPI, the Bank of Korea policy rate decision, U.S. March CPI, the preliminary April University of Michigan Consumer Sentiment Index, U.S. manufacturing orders for April, and the U.S. fiscal balance for March.

Source: MINKABU PRESS

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