The Tokyo stock market is likely to see a strong rebound on the 14th, led by major stocks, with the Nikkei Stock Average expected to stage a significant recovery. On the previous day, the index demonstrated resilience after falling nearly 700 yen at one point, showing a reluctance to decline further toward the end of trading. Despite deepening turmoil in the Middle East situation, short covering by short-term traders is expected to kick in, and the index may recover to the 57,000 level today. Risk-aversion sentiment remained strong through European trading hours on the previous day, with stock prices across European markets falling across the board. Investor sentiment was dampened by the failure of peace negotiations between the United States and Iran, and selling dominated as investors remained cautious about potential impacts on corporate earnings from persistently high crude oil prices amid Middle East tensions. However, in the latter half of trading, global markets pared their losses as U.S. stocks rose. In the U.S. stock market, the Dow Jones Industrial Average rebounded, recovering losses from the previous week, after President Trump told reporters that "Iran has contacted us and they desperately want a peace agreement," providing a catalyst for buying. Although WTI crude oil futures prices surged to the $105 per barrel level at one point, weighing on the stock market, short-covering pressure continues to provide underlying support. Semiconductor-related stocks generally showed strength, with the Philadelphia Semiconductor Index (SOX Index) rising for nine consecutive sessions and finally breaking through the 9,000 mark. With U.S. markets breaking the risk-off trend from European trading hours, the Tokyo market is also likely to see renewed buying centered on semiconductor-related stocks today, with the overall index expected to aim for higher levels. The movement of foreign exchange markets also warrants attention, and while the accelerating yen depreciation against the euro may be viewed with caution, the relatively stable movement in the 159 yen per dollar range against the U.S. dollar is likely to have a limited impact on the overall market.

In the U.S. stock market on the 13th, the Dow Jones Industrial Average rose 301.68 points to 48,218.25, rebounding from the previous trading day. The Nasdaq Composite Index was up 280.84 points at 23,183.73.

Today's economic calendar features a 20-year Japanese Government Bond (JGB) auction and the final industrial production figures for February. Overseas, China's March trade statistics and the U.S. Producer Price Index (PPI) for March are scheduled. The Thai and Indian markets will be closed.

Source: MINKABU PRESS

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