[Tokyo 12th Archyde.com]–The Nikkei Stock Average is expected to fall back in the Tokyo stock market today. Concerns regarding monetary tightening resurfaced in the US stock market the day before, and the Nasdaq Composite fell sharply. The Nikkei average is likely to remain below the psychological milestone of 26,000 yen, following the trend of lower US stock prices in the Tokyo stock market.
The expected range of the Nikkei average is 25,700 yen to 26,200 yen.
In the US stock market on the 11th, the three major stock indexes fell, and the Nasdaq Composite fell by more than 3%. The April Consumer Price Index (CPI) results released in the morning did not dispel investor concerns over US interest rate hikes and the economy.
April CPI rose 8.3% year-on-year, surpassing market expectations of 8.1%. Inflation may have peaked but has exceeded 6% for the seventh straight month, and the Federal Reserve is expected to continue tightening monetary policy for the foreseeable future.
The dollar / yen pair in the morning was around 129.90 yen, which is slightly stronger than the 130.35 yen pair as of 3:00 pm the day before. Chicago’s Nikkei average futures June contract (yen denominated) liquidation price is 25,835 yen, which is below the psychological milestone of 26,000 yen. Profit-taking sales are expected to accelerate in a wide range of industries in the Tokyo market as well, following the trend of lower US stock prices.
In the market, “a sense of caution regarding the tightening of US monetary policy has resurfaced. Tomorrow will be the calculation date of the Nikkei 225 SQ (Special Clearing Index), so it is easy for hedge sales to hold down the upside in the stock market trend.” (Securities) is heard.
Today, the financial results of major companies such as Softbank Group, Tokyo Electron, Nissan Motors, Mitsubishi Motors, SUBARU, and Kubota are scheduled to be announced in Japan. In the United States, the April Wholesale Price Index (PPI, Ministry of Labor) will be released.
Previous business day closing price Year-to-date high price Year-to-date low
Nikkei 225 26213.64 29388.16 24681.74
+46.54 January 5, 2022 March 9, 2022
Chicago Nikkei Average Futures Limit 25835 (yen denominated)
