Tokyo stock markets are expected to shift sharply toward risk-on sentiment on May 21, with the Nikkei Stock Average likely to rebound strongly for the first time in six days. After falling more than 3,400 points over the past five trading days through the previous session, buying pressure aimed at a rebound is expected to surge. European stock markets saw widespread buying the previous day, with Germany's DAX rising 1.4% and France's CAC 40 climbing 1.7%, both posting strong gains. Reports that U.S. President Trump stated negotiations with Iran are in their final stages led to buybacks in semiconductors and other sectors, with investors watching the decline in crude oil prices. In U.S. stock markets, the Dow Jones Industrial Average rebounded sharply, recovering the 50,000 level in one move. Expectations that Middle East tensions may subside drove investment flows into a broad range of stocks, including cyclical and financial shares. NVIDIA , which had its earnings announcement scheduled after the close, also traded firmly, lifting semiconductor-related stocks broadly, and the Nasdaq Composite Index outpaced the Dow in percentage gains. The Philadelphia Semiconductor Index (SOX Index) surged 4.5%. NVIDIA's earnings results exceeded market expectations for revenue and gross margin guidance for the May-July quarter, and the company also announced an 80 billion dollar share buyback. While the earnings event was close to a perfect outcome, the company's after-hours stock price traded softly. In the Tokyo market, AI and semiconductor-related stocks that have been sold off are expected to be bought back en masse, likely pushing up the Nikkei Average. A strong session is widely anticipated, with gains exceeding 1,000 points targeting the 61,000-62,000 range.

In U.S. stock markets on the 20th, the Dow Jones Industrial Average rose 645.47 dollars to 50,009.35, rebounding sharply from the previous trading day. The Nasdaq Composite Index gained 399.64 points to 20,270.35.

On the schedule for today are weekly cross-border securities transactions, April trade statistics, March machinery orders, April supermarket sales, April greater Tokyo condominium sales, and real export and import trends. Overseas, focus will be on May Eurozone PMI, May UK PMI, German PMI, and French PMI, as well as U.S. May PMI (S&P Global survey, preliminary). Other releases include April U.S. housing starts, weekly U.S. initial jobless claims, and May Philadelphia Fed Manufacturing Index.

Source: MINKABU PRESS

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