The Nikkei Average is poised to rebound on May 27, with buying centered on major shares. The index posted a slight pullback the previous day on concerns over the pace of recent gains, but losses were limited. Today, the market is expected to erase the previous session's losses and return to record-high territory. European markets closed mixed the previous day, with major economies like Germany and France turning in generally weak performances. Investors remained cautious amid lingering uncertainty over whether the U.S. and Iran will reach an agreement to end hostilities. In the U.S., the Dow Jones Industrial Average fell for the first time in four days on concerns over the Middle East situation. The U.S. military announced it had struck Iranian missile launch sites and vessels in self-defense, triggering a wait-and-see mood. However, capital flowed into the semiconductor sector, lifting the tech-heavy Nasdaq Composite Index by more than 1% for a fourth consecutive session to a record high. Micron Technology , a major memory chipmaker, surged 19%, sparking a rally across other semiconductor-related shares. The Philadelphia Semiconductor Index (SOX) jumped 5.5% to also hit a record high. The rally in U.S. chip stocks is expected to provide a tailwind for Tokyo equities. Today marks the final day of trading with rights attached for May contracts, and the market is likely to close strong in the 65,000 yen range. While investors must monitor news flow regarding the Middle East, AI and semiconductor-related shares tend to be resilient, and solid buying sentiment is expected throughout the session.

On Wall Street, the Dow Jones Industrial Average fell 118.02 points to 50,461.68 on the 26th, marking its first decline in four days. The Nasdaq Composite Index rose 312.21 points to 20,656.18.

Economic events on today's schedule include the April Corporate Services Price Index, a 40-year Japanese government bond (JGB) auction, and April construction machinery shipments. Overseas data and events include China's January-April industrial profits, Australia's April Consumer Price Index (CPI), the Reserve Bank of New Zealand's policy rate decision, and a U.S. 5-year Treasury auction. Markets in Singapore, Malaysia, and Indonesia are closed for holidays.

Source: MINKABU PRESS

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