The view that short covering will lead the way again today in response to gains in US technology stocks remains widespread, while the projected range for the Nikkei 225 and developments in the previous day’s US market have been reported. The Dow Jones Industrial Average opened lower on the 6th, the Nasdaq rebounded, and futures are expected to trade around ¥58,235.
According to market news reporting on trends in the Japanese and US equity markets, the Dow Jones Industrial Average fell $237.33 to $51,285.73 on the 6th, while the Nasdaq Composite rose 264.42 points to 24,579.42. Against the backdrop of short covering in the US market, buying is expected to lead the Japanese market, particularly in semiconductor and AI-related stocks. This has prompted views that the projected range for the Tokyo market will be higher.
Although short covering in semiconductor and AI-related stocks strengthened in the US market on the 6th, offsetting the decline in the Nikkei 225, analysts say dip-buying is likely to emerge in the Japanese market from the 6th onward. After the previous day’s decline, the Nikkei 225 may be entering a phase in which it tests a short-term rebound. Technically, a candlestick with an extended lower shadow is attracting attention as a factor supporting a rebound.
Points attracting attention today include the low ¥59,000s and around ¥60,000 as potential resistance levels on the upside for the Nikkei 225, and the ¥57,000s, ¥56,000 and ¥54,258 as downside reference levels. Although uncertainty surrounding AI is expected to persist, the possibility of continued short covering centred on technology stocks has been highlighted.