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Bargain hunting likely to support Tokyo shares on 21st despite overseas weakness

Tue Apr 21, 2026 8:00 am JST Market

Tokyo stocks are expected to see persistent buying on 21st despite conflicting views, with the Nikkei average set to extend gains. The index may test its record high of 59,518.34 yen reached on 16th. Resistance is anticipated at the upper 59,000 yen range, with trading sensitive to Middle East tensions, crude oil prices and US stock futures. European shares fell across the board previously as US-Iran peace talks stalled, pushing Brent and WTI crude higher and lifting global long-term interest rates. Profit-taking hit both stocks and bonds as inflation concerns returned to focus. In the US, the Dow edged lower while the Nasdaq ended its 13-day winning streak. Geopolitical risks resurfaced after the US military seized an Iranian vessel and President Trump set an April 23 ceasefire deadline. While the Hormuz blockade weighs on sentiment, dip-buying remains resilient. Futures-led buying could push the Tokyo market toward record highs despite intraday volatility.

On 20th, the Dow Jones Industrial Average fell 4.87 dollars to 49,442.56 dollars, its first decline in three sessions. The Nasdaq Composite Index fell 64.09 points to 24,404.39.

Today's calendar includes Japan's April lending survey, March supermarket sales and the BOJ Financial System Report. Overseas, focus is on UK unemployment, German ZEW sentiment and US retail sales. A confirmation hearing for Fed Chair nominee Warsh is also scheduled.

Source: MINKABU PRESS

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

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