The Tokyo stock market is expected to see broad-based buying centered on major stocks on the 11th. The Nikkei Stock Average is highly likely to rebound sharply to the mid-63,000 yen level and update its all-time high. European stock markets last Friday closed nearly across the board lower, with both Germany's DAX and France's CAC falling more than 1%. Uncertainty surrounding the Iranian situation remained, and position-adjustment selling by institutional investors was observed on that day. However, in the U.S. stock market, buying confidence emerged after the April U.S. employment report released in the morning showed nonfarm payrolls significantly exceeding consensus, with particularly strong buying in technology stocks, especially semiconductors. The Nasdaq Composite Index surged to re-enter its all-time high range. Additionally, the Philadelphia Semiconductor Index (SOX Index) soared 5.5%, closing near its highs and updating its record. However, the University of Michigan Consumer Sentiment Index (preliminary) for May, released subsequently, declined from the previous month and fell short of expectations, prompting profit-taking mainly in cyclical stocks, leaving the Dow Jones Industrial Average with only a modest gain. In the Tokyo market, major semiconductor manufacturing equipment stocks, which account for a large portion of the Nikkei Average's composition, are likely to benefit from the U.S. semiconductor rally last Friday, supporting a strong market tone. While there is speculation about waiting to see the results of the U.S.-China summit scheduled for the 14th-15th of this week, futures-led trend-following buying driven by AI algorithms is expected to provide index-lifting effects.

In the U.S. stock market on the 8th, the Dow Jones Industrial Average edged up 12.19 dollars to 49,609.16 from the previous trading day. The Nasdaq Composite Index rose 440.88 points to 20,247.07.

On the schedule front, U.S. Treasury Secretary Bessent will visit Japan through the 13th. Major Japanese corporate earnings announcements are scheduled for IBIDEN CO.,LTD. <4062>, JX Advanced Metals Corporation <5016>, TOWA CORPORATION <6315>, Nippon Yusen Kabushiki Kaisha <9101>, SoftBank Corp. <9434>, and Mercari, Inc. <4385>. Overseas, China's Consumer Price Index (CPI) for April, China's Producer Price Index (PPI) for April, and U.S. existing home sales for April will be released, along with an auction of U.S. 3-year Treasury notes.

Source: MINKABU PRESS

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