The Tokyo stock market is expected to rebound on the 12th. AI semiconductor-related stocks in the U.S. market continued their strong performance the previous day, and Japanese stocks are likely to follow this trend. The expected trading range is 62,500-63,500 yen.

In the U.S. market on the 11th, all three major stock indices rose, with the Nasdaq Composite Index and the S&P 500 Index updating their record highs for consecutive days. Regarding the Iranian situation, Iran responded to a U.S. proposal, but President Trump told reporters that Iran's response was "garbage" and indicated that the ceasefire agreement was "on life support." With the situation still perceived as fluid, U.S. crude oil futures maintained high levels, while the Philadelphia Semiconductor Index (SOX) rose more than 2% to a record high. AI semiconductor-related stocks continued to attract buying interest. In night trading at the Osaka Exchange, the June Nikkei 225 futures rose to 62,890 yen, suggesting a solid start for the Nikkei average in the Tokyo market in the morning. Subsequently, trading is expected to focus on individual stock selection based on earnings announcements. On the 12th, U.S. Treasury Secretary Bessent is scheduled to meet with Prime Minister Takaichi Sanae and others. Attention will be focused on what statements regarding foreign exchange emerge after the meeting, including from Finance Minister Katayama Satsuki. If an eager stance toward curbing yen depreciation is shown and expectations for an early interest rate hike by the Bank of Japan rise further, preference for bank stocks and yen appreciation beneficiary stocks is likely to strengthen. On the other hand, how the market environment will change following the U.S.-China summit from the 14th is currently a major focus of interest, and it is anticipated that some profit-taking pressure may be applied to blue-chip stocks at high levels.

In the U.S. stock market on the 11th, the Dow Jones Industrial Average rose 95.31 dollars to 49,704.47 dollars, continuing its modest gains from the previous trading day. The Nasdaq Composite Index was up 27.04 points at 20,274.12.

In terms of the domestic schedule, the household survey for March and the "main opinions" from the Bank of Japan Monetary Policy Meeting (held April 27-28) will be released. The Ministry of Finance is scheduled to conduct a 10-year bond auction. The leading economic index and consumer activity index for March will also be announced. Furukawa Electric Co., Ltd. <5801>, Sumitomo Electric Industries, Ltd. <5802>, Mitsubishi Heavy Industries,Ltd. <7011>, Kawasaki Heavy Industries,Ltd. <7012>, SUMCO CORPORATION <3436>, and Shiseido Company, Limited <4911> are scheduled to announce earnings. Internationally, the May German ZEW Economic Sentiment Index, April U.S. Consumer Price Index (CPI), and April U.S. fiscal balance are expected to be released. A 10-year bond auction will also be conducted in the United States.

Source: MINKABU PRESS

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