The Nikkei rebounded for the first time in five sessions, with buying aimed at a technical rebound expected to lead in the afternoon session. With the US CPI release, US corporate earnings and ASML's earnings announcement due tonight, investors are expected to remain cautious.
The Nikkei is expected to hold its morning-session gains and trade in a range in the low ¥68,000s during the afternoon session. Gains in high-priced stocks pushed the index higher, while domestic-demand and defensive stocks continued to perform weakly, leaving stock selection skewed toward issues with a large impact on the index.
Uncertainty surrounding the situation in the Middle East and rising oil prices are making investor sentiment cautious, and gains are expected to be limited ahead of tonight's US CPI release.
Earnings announcements from major US financial institutions and ASML Holding of the Netherlands are also scheduled for tonight, keeping attention focused on semiconductor-related stocks.