Tokyo stock markets are likely to see the Nikkei Stock Average continue its rise on April 27, with a strong likelihood of reclaiming the 60,000 level. While the index briefly recovered to the 60,000 range on the 23rd, it was subsequently pushed back to the 59,000 level. The key focus today will be whether the index can close above the 60,000 mark. However, investment flows have been heavily concentrated in high-priced stocks with significant Nikkei weighting, resulting in a noticeable lag in the TOPIX performance. While the Nikkei has been rising, a large number of declining stocks has been conspicuous, with the advance-decline ratio falling below 100 on both the Prime Market and Nikkei 225 bases. Market attention is focused on whether a return reversal movement will emerge from the semiconductor-focused rally. European stock markets were generally soft at the end of last week, but U.S. markets continued their risk-on stance centered on semiconductors. While the Dow Jones Industrial Average declined slightly on the previous Friday, the Nasdaq Composite Index rebounded sharply and once again hit a record high. Particularly noteworthy was the Philadelphia Semiconductor Index (SOX Index), which recorded its 18th consecutive gain. Additionally, the index's gain reached 4.3% on that day, a remarkable performance. While there are observations that the U.S. and Iran are showing signs of rapprochement on Middle East issues, uncertainty remains. This has capped upside for the Dow, but semiconductor-related stocks are treated as a special case, with their upward momentum actually accelerating. Among individual stocks, Intel , whose earnings results were well received, surged as much as 27% at one point. A shooting incident occurred at a hotel in Washington on the 25th, but President Trump and Trump administration officials were safe, and the impact on U.S. stock index futures was limited. In the Tokyo market, U.S. high-tech stock strength provides a strong tailwind for the Nikkei Stock Average, but after initial buying, the index may struggle to extend gains due to concerns about elevated levels. Market attention is also focused on the NT ratio, which has reached record highs.

In U.S. stock markets on the 24th, the Dow Jones Industrial Average fell 79.61 points to 49,230.71, continuing its decline from the previous trading day. The Nasdaq Composite Index rose 398.09 points to 20,836.59.

On the economic calendar today, March restaurant sales figures are due. Overseas, auctions for 2-year and 5-year U.S. Treasury notes are scheduled. Among major domestic corporate earnings, market interest is high for ADVANTEST CORPORATION <6857>.

Source: MINKABU PRESS

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