Tokyo stocks seen extending gains on June 2, focus on SoftBank Group Corp. <9984>

The Tokyo stock market is poised to extend gains for a third straight session on Tuesday, supported by selective buying in market leaders despite mixed trading. However, upside may be capped as profit-taking emerges following the recent rapid rally. European shares broadly weakened on Monday, with Germany's DAX falling and both France's CAC 40 and the UK's FTSE 100 declining for a third consecutive session. Geopolitical tensions in the Middle East resurfaced after reports that Iran suspended talks with the U.S., driving West Texas Intermediate (WTI) crude futures higher and pushing up European long-term interest rates, which weighed on sentiment. Conversely, Wall Street rallied on tech strength, with the Nasdaq Composite logging its eighth consecutive gain and fifth straight record close. The Dow Jones Industrial Average also ticked up for a fourth straight day to extend its record run. In individual names, Nvidia jumped over 6%, cheered by new PC processor announcements at a tech event in Taiwan on Monday, lifting the broader chip sector. Arm Holdings exhibited explosive momentum, surging 15.7%. While the U.S. chip rally should bolster risk appetite in Tokyo, overheating concerns persist. SoftBank Group Corp. <9984>?which recently eclipsed TOYOTA MOTOR CORPORATION <7203> in market value?is expected to anchor market direction.

On Monday, the Dow Jones Industrial Average edged up 46.42 dollars to 51,078.88, while the Nasdaq Composite rose 114.18 points to 27,086.80.

Tuesday's domestic economic calendar features May monetary base data, a 10-year JGB auction, and the May fiscal funds private sector balance. Globally, investors await the Eurozone's preliminary May consumer price index (HICP) and the U.S. April Job Openings and Labor Turnover Survey (JOLTS). Markets in Malaysia are closed.

Source: MINKABU PRESS

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