Tokyo stocks seen extending gains on the 15th, buoyed by SpaceX's strong debut and hopes for U.S.-Iran ceasefire

The Nikkei Stock Average is poised to rally for a second straight session on June 15, with the benchmark likely to breach the 68,000-yen mark at some point during intraday trading.

On Friday, June 12, all three major Wall Street benchmarks finished higher, with the Philadelphia Semiconductor Index (SOX) gaining 1.5%, while Nikkei futures September contracts on the Osaka Exchange settled at 67,440 yen in the night session. SpaceX made its highly anticipated market debut the same day, opening at $150?well above its IPO price of $135?before closing its first session at $160.95. The stellar debut gave a major lift to investor sentiment. Geopolitical optimism also anchored the broader market as the U.S. and Iran closed in on a ceasefire. Following signs from U.S. President Trump of an imminent peace deal, crude oil futures plummeted, sparking a rotation into equities. Trump noted the signing was set for June 14 (U.S. time), and early Monday morning, Japan time, he announced via social media that an agreement had been finalized. The deal reportedly includes free passage through the Strait of Hormuz and an immediate termination of the U.S. naval blockade. Pakistan’s Prime Minister Shehbaz Sharif, who mediated the talks, also confirmed the breakthrough on social media, with a formal signing ceremony slated for June 19 in Switzerland.

The progress toward a ceasefire is poised to supercharge investor risk appetite. Futures-led buying is expected to drive the Nikkei higher on Monday, potentially testing its intraday all-time high of 68,786.49 yen touched on June 3. However, some caution remains as investors look ahead to the Federal Open Market Committee (FOMC) meeting on June 16?17. The meeting marks the high-profile debut of newly appointed Fed Chair Waller, with market participants laser-focused on his policy guidance. Once the initial knee-jerk buying fades, profit-taking and position-squaring could emerge to cap gains across the broader market. Meanwhile, the Bank of Japan’s two-day policy meeting starting Monday is already largely priced in for another interest rate hike.

In New York trading on Friday, the Dow Jones Industrial Average rose 353.51 dollars to finish at 51,202.26, extending its winning streak, while the Nasdaq Composite Index added 79.18 points to close at 25,888.84.

Looking at the economic calendar, the BOJ’s policy meeting kicks off Monday. On the domestic front, Japan’s April tertiary industry activity index will drop during trading hours. Overseas, the G7 Summit runs in France through June 17, where a bilateral meeting between the leaders of Japan and Italy is scheduled on the sidelines. In the U.S., upcoming indicators include the May industrial production index.

Source: MINKABU PRESS

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