Against a backdrop of higher U.S. stocks, buying aimed at a technical rebound is entering the Nikkei Stock Average, and the Tokyo market is expected to remain on a recovery trend. The upper-end target for the Nikkei is seen at around 67,000, approximately ¥1,700 higher than the previous day.
Following gains in the three major U.S. stock indexes in the previous session, the Nikkei Stock Average is expected to have the potential to rebound. The Nikkei is expected to reach a level approximately ¥1,700 above the previous day's close of ¥65,326, with 67,000 cited as an upper-end target.
The Nikkei has fallen approximately ¥3,900 in the consecutive declines through the previous day, making it easier for buying aimed at a short-term technical rebound to emerge. Buying could spread across a broad range of stocks in the Tokyo market in response to developments in the U.S. market.
The Dow Jones Industrial Average rose on the 19th for the first time in 4 trading days, and the rise in U.S. stocks is expected to provide a buying incentive for the Nikkei as the trend carries over.