The Nikkei 225 is expected to rebound in Tokyo trading on the 3rd, with room to rise around ¥670 from the previous close of ¥64,325 to approximately ¥65,000. Meanwhile, concerns over higher oil prices and rising global interest rates persist.
The Nikkei 225 is likely to rebound in Tokyo trading on the 3rd. U.S. equities rose as the increase in U.S. interest rates paused, which is expected to provide a buying incentive for Japanese stocks. The Nikkei had fallen more than ¥1,800 the previous day, so buying aimed at a technical rebound is also expected to provide support.
The Nikkei's previous close was ¥64,325, and based on this level, the index is expected to have room to rise by around ¥607 to ¥670.
However, oil prices remain elevated, and concerns over rising interest rates globally have not subsided. Given the downside risks to the economy and corporate earnings, a cautious approach to price movements is warranted.