Japanese stocks remained in a narrow range after the holiday break, with a wait-and-see mood spreading ahead of the US CPI release. The Nikkei Average temporarily recovered to the ¥67,000 range, but gains remained capped amid a lack of catalysts.
The Nikkei Average remained in a narrow range after the holiday break amid a lack of catalysts. Although it temporarily recovered to the ¥67,000 range during the day, overall market movement was limited.
Amid continuing uncertainty over the situation in the Middle East, the Japanese market remained weighed down after following the previous day's decline in the Dow Jones Industrial Average. Market participants are focused on the lack of catalysts.
With the US consumer price index (CPI) due to be released the following night, investors are taking a stronger wait-and-see approach, and trading to capture short-term moves is believed to be declining.
Trading by large institutional investors is generally subdued during the Bon holiday period, and market participants share the view that the market may begin moving in earnest after the holiday break.