The Dow Jones Industrial Average closed at 52,495, up 529 points, supported by a positive reaction to 3M’s earnings and the decline in the 10-year US Treasury yield. The Japanese market is expected to trade firmly, according to reports.
The outlook for the Tokyo market is considered firm. U.S. stocks moved unevenly, with the Dow Jones Industrial Average and S&P 500 rising while the Nasdaq fell. The Dow ended trading up $529 at $52,495, with 3M's earnings announcement and the decline in the U.S. 10-year Treasury yield cited as positive factors.
The Nasdaq remained in negative territory despite narrowing its losses. Crude oil futures briefly attempted to rise before losing momentum, and some observers have pointed to the possibility of broader bargain hunting as concerns about inflation recede. CME225 futures indicate that both yen-denominated and dollar-denominated contracts are expected to open sharply higher.
For Japanese equities, some expect more factors supporting a rebound in buying, against the backdrop of lower long-term U.S. interest rates and movements in energy markets. Others believe the market may remain stable during the session while its ability to withstand profit-taking on rebounds is put to the test.
The Nikkei 225's projected range is ¥64,400 to ¥65,500, although the market is also expected to encounter periods of limited upside depending on developments ahead.