In Tokyo trading on the 5th, buying aimed at a technical rebound in the Nikkei 225 is expected to spread, supported by gains in US stocks. The possibility that the Democratic Party will control both chambers of Congress in the US midterm elections has been cited, and the view has also been reported that risk appetite will strengthen.
In Tokyo trading on the 5th, buying aimed at a rebound in the Nikkei 225 is expected to spread, following its movements through the previous day. Gains in the 3 major US stock indexes are expected to spill over into the Japanese market.
The Nikkei 225 is said to be near a 3-month low, making this a phase in which buying aimed at a technical rebound is likely to emerge in the short term. The previous close was ¥62,188, and attention is focused on the market’s subsequent movements.
The article identifies developments in US politics as a factor affecting trading in the Nikkei 225 and presents the view that buying may lead across a broad range of stocks. Future market trends may change depending on additional factors, it says.