The Nikkei 225 is expected to trade around its lows in the afternoon session. Although the U.S. Treasury has announced an expansion of its Treasury buybacks, the scale fell short of expectations, and rising long-term interest rates and crude oil prices are expected to reignite inflation concerns.
The Nikkei 225 is expected to trade around its lows in the afternoon session, with a growing view that any rebound will be limited. The decline from the opening of the morning session has widened, and trading may continue to reflect concerns about downside risks.
In the United States, the Treasury announced that it would triple its Treasury buybacks, but the scale fell short of market expectations, sending long-term interest rates higher. Rising crude oil prices amid escalating tensions in the Middle East are also reigniting inflation concerns.
In Tokyo, buying in financial stocks in response to higher interest rates is supporting the downside, while declines in high-priced and market-related stocks are weighing on the market, potentially allowing risk-off selling to continue. Developments in the Middle East and interest rate trends are likely to remain the focus.