The Tokyo stock market on May 13 is likely to see the Nikkei Stock Average trend slightly weaker amid a lack of clear direction. European stock markets have shown notable resistance at higher levels, with Germany's DAX falling 1.6% the previous day, while other major indices also tested lower levels. Investor sentiment has been dampened by the lack of progress in ceasefire negotiations between the United States and Iran. German semiconductor giant Infineon Technologies also traded lower on the day, contributing to the overall risk-averse mood in the market. In the U.S. stock market, the Dow Jones Industrial Average was modestly firm, but profit-taking pressure emerged in the semiconductor sector, causing the tech-heavy Nasdaq Composite Index to decline. The Philadelphia Semiconductor Index (SOX Index), which consists of semiconductor stocks, fell more than 3%. Geopolitical risks were heightened again after an Iranian spokesperson mentioned the possibility of enriching uranium to weapons-grade levels if Iran were attacked again. Concerns also rose as WTI crude oil futures strengthened their upward trend, rising back above $100 per barrel. Ahead of the U.S.-China summit scheduled for May 14-15, investors appeared inclined to wait for the outcome, holding back on purchases. On the economic data front, the U.S. Consumer Price Index (CPI) for April rose 3.8% year-on-year, exceeding expectations and weighing on expectations for a rate cut by the Federal Reserve. In the Tokyo market, the Nikkei is likely to face resistance on the upside in response to overseas market movements. However, strong dip-buying demand at lower levels is expected to limit any deep decline.

In the U.S. stock market on May 12, the Dow Jones Industrial Average rose $56.09 to $49,760.56, advancing for the third consecutive day. The Nasdaq Composite Index fell 185.93 points to 20,088.20.

On the schedule for today, Japan will release April lending and deposit trends, April cross-border securities transactions, March balance of payments, and the April Economy Watchers Survey. Among major domestic corporate earnings announcements, SoftBank Group Corp. <9984> is attracting high attention. Overseas, the eurozone will release March industrial production, the U.S. will release the April Producer Price Index (PPI), and there will be a U.S. 30-year Treasury bond auction.

Source: MINKABU PRESS

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