The Tokyo stock market on April 16 is expected to see the Nikkei average rise for a third straight day, with sustained buying in blue-chip stocks despite conflicting market sentiment. While the all-time high of 58,850.27 yen reached on February 27 remains a focal point for investors, upside momentum has stalled in the 58,000 yen range, and the previous session saw gains retreat after reaching the 58,500 yen level. Gains are likely to be capped again today, potentially delaying a move to a fresh record. European markets ended mixed on the previous day amid a prevailing wait-and-see mood. While some risk-taking emerged on hopes for progress in U.S.-Iran peace talks, selling pressure from position adjustments remained. In the U.S., tech stocks led by Big Tech outperformed, with the Nasdaq Composite Index hitting a record high and recording its 11th consecutive gain, the longest such streak in about four years. While the Dow Jones Industrial Average ended slightly lower, the S&P 500?a key benchmark for institutional investors?joined the Nasdaq in reaching a fresh record high. The Philadelphia Semiconductor Index (SOX) also extended its winning streak to 11 sessions, continuing its record-breaking run. There is a growing sense among institutional investors of the risk of being underinvested. The Nikkei is set to follow U.S. gains higher. Stabilizing long-term interest rates in Japan and the U.S. are providing a tailwind for equities. However, profit-taking near record highs is anticipated, suggesting a sharp rally is unlikely. After the initial opening move, trading will likely be driven by Asian markets and U.S. stock futures.

In the U.S. stock market on April 15, the Dow Jones Industrial Average fell 72.27 points to 48,463.72, its first decline in three sessions. The Nasdaq Composite Index rose 376.93 points to 24,016.01.

Today's domestic schedule includes weekly cross-border securities transactions data and a one-year Treasury bill auction. Overseas highlights include China's first-quarter GDP, March retail sales, industrial production, fixed asset investment, and real estate development investment. Also due are the Philadelphia Fed manufacturing index for April, U.S. industrial production and capacity utilization for March, and weekly initial jobless claims. The G20 Finance Ministers and Central Bank Governors Meeting also begins today.

Source: MINKABU PRESS

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