Tokyo stock market is expected to see a pause in its rally on April 28, with the Nikkei Stock Average likely to trade in a relatively narrow range around the previous day's close amid conflicting bullish and bearish views. On the previous day, the index surged nearly 1,200 points at one point, bringing the 61,000 level into view. The closing price also jumped more than 800 points to land in the mid-60,000 range, renewing its all-time high with remarkable strength, but concerns about the rapid pace of gains cannot be ignored at current levels. European stock markets on the previous day were mixed, but markets in major GDP countries such as Germany and France were generally weak. Both Germany's DAX and the UK's FTSE 100 extended their losing streak to six consecutive days, strengthening their correction trend. With WTI crude oil futures remaining elevated against the backdrop of uncertain conditions in Iran, long-term interest rates rose across countries, weighing on equity markets. Meanwhile, in the U.S. stock market where tech stocks continue to dominate, the Nasdaq Composite Index remained resilient on the day, rising slightly to renew its all-time high, but the Dow Jones Industrial Average declined modestly for the third consecutive day. Reports that Iran's Revolutionary Guards boarded two container ships near the Strait of Hormuz continued to fuel tensions, dampening investor sentiment. Concerns about the impact of rising crude oil prices on corporate earnings were also renewed. However, individual stocks that were rewarded for strong earnings performance were seen rising, supporting the overall market's downside. Notably, the Philadelphia Semiconductor Index (SOX Index), which consists of semiconductor stocks, closed in negative territory for the first time in 19 days. While buying interest in major semiconductor manufacturing equipment stocks remains strong in the Tokyo market, the performance of these stock groups today is likely to influence the direction of the overall market. Attention is focused on the results of the Bank of Japan's Monetary Policy Meeting, and during trading hours, there is also the possibility of being influenced by developments in South Korea and Taiwan markets, where semiconductor-related companies have a high weighting.

In the U.S. stock market on the 27th, the Dow Jones Industrial Average fell 62.92 dollars to 49,167.79 dollars from the previous trading day, marking its third consecutive decline. The Nasdaq Composite Index rose 50.50 points to 20,887.10.

In terms of schedule, today is the ex-rights day for April, effectively marking the start of May trading. Other events include the unemployment rate for March, the job openings-to-applicants ratio for March, the announcement of the Bank of Japan's Monetary Policy Meeting results and a press conference by BOJ Governor Kazuo Ueda. Overseas events include the S&P CoreLogic Case-Shiller Home Price Index for February, the U.S. Consumer Confidence Index for April, and the auction of U.S. 7-year notes.

Source: MINKABU PRESS

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