Tokyo stocks seen vulnerable to profit-taking on June 1, but supported by US gains and lower oil prices

The Tokyo stock market is expected to face a heavy Nikkei Stock Average on June 1, as profit-taking is triggered by concerns over the speed of recent gains, particularly in major shares. On Friday, the index surged more than 1,600 points to finish in the upper 66,000 range, hitting a fresh record high, but upside momentum is likely to be capped today. On the other hand, the downside is expected to remain firm as dip-buying from investors who missed the recent rally is anticipated. European shares ended mixed on Friday. Germany's DAX closed marginally higher, but overall market sentiment remained hesitant. Market participants are closely watching developments regarding a potential end to hostilities between the United States and Iran. The pan-European STOXX 600 index posted a minor rebound. On Wall Street, the Dow Jones Industrial Average extended its winning streak to a third consecutive day, continuing its record-breaking run. Falling WTI crude oil futures and declining long-term interest rates fueled buying in cyclical stocks, lifting the broader market. The Nasdaq Composite Index notched its seventh straight session of gains to hit a fresh record high, albeit at a modest pace. The S&P 500 also extended its winning streak to seven days, continuing its record-high run. While semiconductor shares were mixed, individual names such as Micron Technology and Salesforce surged. As the Tokyo market enters June trading, gains on Wall Street and lower oil prices provide a tailwind, but the Nikkei's rapid ascent?gaining around 6,500 points over the past seven sessions since late May?has fueled concerns over a short-term pullback. Nonetheless, falling long-term interest rates remain a supportive factor, keeping the downside firm.

On Friday, the Dow Jones Industrial Average rose 363.49 dollars to close at 51,032.46, extending gains for a third straight session. The Nasdaq Composite Index gained 55.14 points to end at 20,972.62.

Economic data due today includes Japan's corporate financial statements for the January-March quarter, alongside May new vehicle and mini-vehicle sales. Overseas indicators include the Ratingdog China Manufacturing PMI for May, the Eurozone unemployment rate for April, the U.S. ISM Manufacturing Index for May, and U.S. construction spending for April. Markets in Singapore, Malaysia, Thailand, and Indonesia are closed.

Source: MINKABU PRESS

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