Buying is expected to lead the market following gains in US technology stocks, but the upside is expected to be constrained by caution at high levels. On the 6th, the Nikkei 225 is expected to temporarily recover to the ¥70,000 range on buying of AI-related stocks, and its subsequent direction will be closely watched.
In the New York market on the 6th, the Dow rose $253.38 to 51,521.28 and the Nasdaq Composite rose 122.48 points to 27,599.79, with US stocks broadly continuing their upward trend. Nikkei 225 futures in the night session also recovered to the ¥71,000 range, suggesting that buying is likely to continue in the Tokyo market.
In the Tokyo market on the 6th, buying of AI-related stocks following gains in US technology stocks is expected to drive the Nikkei 225 to close above the ¥70,000 milestone for the first time in about 3 months. The bullish market is expected to resume, supported by a positive candlestick and the 25-day moving average at ¥65,861.
In the US market, semiconductor and AI-related stocks rose on expectations for earnings growth and against the backdrop of movements in long-term interest rates, lifting the major stock indexes. In the crude oil market, WTI crude futures temporarily fell into the $86 range amid expectations of a recovery in oil supplies from Gulf countries. A pause in the rise in long-term interest rates also eased caution across the market.
Looking ahead, optimism toward AI-related stocks and earnings expectations remain high, but selling by investors waiting for a pullback following the rapid rise is also anticipated. In the near term, the Nikkei 225 is expected to move with the record high of ¥71,723 on 25 June in mind. Potential upside levels include ¥71,692, ¥72,000 and the record high of ¥72,366, while potential downside levels include ¥69,000 and ¥68,930.