The Tokyo stock market is expected to be broadly dominated by profit-taking on the 22nd, with the Nikkei Stock Average likely to fall for the first time in three days. Trading is forecast to range between the upper 58,000 yen level and near 59,000 yen. European stock markets fell across the board on the previous day as risk-averse sentiment persisted. With the US-Iran ceasefire deadline approaching, investors refrained from buying as they sought to assess the outcome. France's CAC 40 and the UK's FTSE 100 both dropped more than 1%. US stocks also saw broad selling across cyclical and technology shares as expectations faded for an end to US-Israeli military operations against Iran. Markets were rattled by reports that Vice President Vance's visit to Islamabad, Pakistan had been postponed. The talks appear to have been called off after Iran failed to provide a response to the proposed agreement. The Dow Jones Industrial Average rose over 400 points in early trading but later weakened, with rising crude oil futures acting as a headwind and late-session selling pushing the index lower. However, after the close of US trading, President Trump announced an extension of the ceasefire deadline, which could have a positive impact on Tokyo trading today. In Tokyo on the previous day, the Nikkei Stock Average posted consecutive gains, surpassing the all-time high set on the 16th at the morning session close. The index later pared gains, leaving the record update on hold, and with Middle East tensions remaining chaotic, upside is likely to be limited today. While the Bank of Japan is expected to refrain from raising interest rates at next week's monetary policy meeting, this appears already priced into the market, and volatility involving futures is likely to continue as investors monitor currency movements.

In US stock markets on the 21st, the Dow Jones Industrial Average fell 293.18 points to 49,149.38, posting consecutive declines. The Nasdaq Composite Index declined 144.43 points to 24,259.96.

On the economic calendar today, Japan will release 2025 trade statistics and March 2026 trade statistics, as well as real export and import trends. Overseas, the central banks of Indonesia and Turkey will announce policy rates, while data includes the UK Consumer Price Index (CPI) for March, the Eurozone Consumer Confidence Index (preliminary) for April, and a US 20-year Treasury auction. In corporate earnings, results for the January-March quarter from TESLA , BOEING , and IBM are drawing significant attention.

Source: MINKABU PRESS

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