Tokyo stocks are expected to rise sharply on May 7, the first trading day after the Golden Week holidays, with buying concentrated in major issues likely to push the Nikkei Stock Average up significantly. Futures-led gains of over 2,000 points appear likely, bringing the 62,000 level into view. In European markets on the previous day, major markets including Germany and France rose broadly, with gains exceeding 2% across the board. Progress in U.S.-Iran negotiations toward ending hostilities in the Middle East was viewed positively. Meanwhile, U.S. stock markets saw pronounced buying in semiconductor and other high-tech sectors, with the Dow Jones Industrial Average and other major indices rising sharply in unison, while the Nasdaq Composite Index and S&P 500 Index both hit record highs. As expectations grew that the Middle East crisis is moving toward resolution, WTI crude oil futures plunged to around $95 per barrel, improving investor sentiment and triggering short covering. Among individual stocks, Advanced Micro Devices surged as much as 20% on positive earnings results, while NVIDIA jumped sharply following its partnership announcement with optical fiber major Corning , boosting overall indices. The Philadelphia Semiconductor Index (SOX Index) also rose sharply by 4.5%, breaking above 11,000 for the first time. The Tokyo market is likely to see accelerated risk-on sentiment, following the rally in U.S. semiconductor stocks. Among individual stocks, focus is likely to shift toward companies with strong earnings as the corporate earnings season kicks into full gear.

In U.S. stock markets on the 6th, the Dow Jones Industrial Average rose 612.34 points to 49,910.59, continuing its sharp gains. The Nasdaq Composite Index was up 512.81 points at 20,838.94.

On the schedule for today are the Bank of Japan's Monetary Policy Meeting minutes, April monetary base data, auction of 6-month Treasury bills, and April office vacancy rates. Overseas, central banks in Malaysia, Mexico, Sweden, and Norway will decide policy rates, while data includes U.S. construction spending for February and March, U.S. labor productivity index for January-March, and U.S. consumer credit balance for March.

Source: MINKABU PRESS

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