Buying is expected to lead in the Nikkei Stock Average against a backdrop of gains in US technology stocks, with the index likely to target around ¥65,000 on the upside. Price movements may become more volatile ahead of the release of the Bank of Japan's Monetary Policy Meeting decision.
All three major US stock indexes rose in the previous day's trading, with particularly strong gains in technology stocks. Against this backdrop, buying is expected to lead in Tokyo, particularly in artificial intelligence (AI)-related and semiconductor stocks.
In today's domestic stock market outlook, the Nikkei Stock Average is expected to attempt a rebound from around the previous day's closing level, with ¥65,000 cited as an upside target. Market participants are watching the sustainability of the US market gains and movements in technology stocks as key points.
However, with the Bank of Japan's Monetary Policy Meeting running through the 18th and its decision due to be released, price movements may become more volatile depending on the content of the announcement. Investors will need to closely monitor the meeting's outcome.