The Nikkei 225 is expected to move lower in Tokyo trading on the 21st, with rising long-term U.S. interest rates and uncertainty over the situation in the Middle East weighing on investor sentiment. Following the previous day's decline, around ¥65,500 is seen as the likely downside target.
The Nikkei 225 is expected to fall to a level around ¥700 below the previous day's close in Tokyo trading on the 21st. All three major U.S. stock indexes declined as long-term U.S. interest rates rose, raising expectations that selling will spread to the Japanese market. In addition, uncertainty over the situation in the Middle East has kept U.S. crude oil futures elevated, becoming a factor that is restraining investor sentiment. Around ¥65,500 is cited as the approximate downside target for the Nikkei 225.
In U.S. equity trading on the 20th, the Dow Jones Industrial Average fell again, closing down $703 from the previous day. The decline in U.S. markets may strengthen the risk-off trend and affect activity in the Japanese market.