The Tokyo stock market on May 28 is expected to remain firm but lack clear direction, with the Nikkei Stock Average projected to trade in the lower 65,000 yen range as gains are capped by heavy upside resistance. European markets on May 27 closed mixed, as Germany's DAX edged down for a second straight session, while France's CAC 40 and the UK's FTSE 100 advanced. The FTSE 100 extended its winning streak to a seventh consecutive session, showcasing strong upward momentum. Persistent Middle East tensions and mixed speculation over a ceasefire were offset by falling crude oil prices, which helped cushion investor sentiment. On Wall Street, the Dow Jones Industrial Average rebounded to a fresh record high, while the tech-heavy Nasdaq Composite Index edged up for a fifth consecutive session to hit a new record closing high. Sentiment was boosted by reports of a framework memorandum for U.S.-Iran peace talks, under which Iran would restore commercial shipping in the Strait of Hormuz to pre-conflict conditions within a month, in exchange for a U.S. troop withdrawal from the region and the lifting of the naval blockade. WTI crude oil futures temporarily plunged to around $87 per barrel, a one-month low, sparking a sector rotation into consumer-related shares. However, the Dow pared its early gains as profit-taking emerged at higher levels due to lingering uncertainty over the fluid situation in the Middle East. In Tokyo, a firm Wall Street close and lower oil prices will provide tailwinds, though trading may remain volatile on geopolitical headlines. Market participants remain cautious, particularly regarding semiconductor-related shares, following the previous session's intraday reversal where early gains were erased.

In U.S. trading on May 27, the Dow Jones Industrial Average rose 182.60 points to close at 50,644.28, rebounding from the previous session. The Nasdaq Composite Index gained 18.55 points to finish at 20,674.73.

On the economic calendar for May 28, Japan will release weekly cross-border securities transactions data prior to the market open. Globally, the Bank of Korea and the South African Reserve Bank are scheduled to announce their policy rate decisions. In the United States, key data releases include April personal income, the Personal Consumption Expenditures (PCE) price index, April durable goods orders, weekly initial jobless claims, April new home sales, and the revised Q1 GDP reading, alongside a 7-year Treasury note auction. Financial markets in India and Indonesia will be closed.

Source: MINKABU PRESS

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