Nikkei Ready to Continue Climbing?
The Nikkei index has the potential to rise in today's trading after Wall Street rallied overnight. Nikkei futures on the SGX rose around 0.6% to 49,590, signaling a fairly positive start. On Tuesday, the Nikkei closed nearly flat at 49,303.45, so the market is still waiting for a new trigger for a clearer move.
On the foreign exchange market, the USD/JPY pair was at 155.83, slightly higher than the Tokyo stock market's closing position on Tuesday of 155.78. This slight weakening of the yen against the dollar typically benefits Japanese exporters, as their dollar earnings appear higher when converted to yen. This could be a factor supporting the Nikkei's movement today.
Looking ahead, market participants' attention will be focused on Japanese economic data due to be released soon. This data is crucial for assessing the likelihood of a Bank of Japan (BoJ) interest rate hike later this month. In addition, investors are also monitoring developments in Prime Minister Sanae Takaichi's economic plans. If there are clear, pro-growth policy signals, sentiment toward the Japanese stock market could strengthen and provide an additional boost to the Nikkei. (asd)
Source: Bloomberg.com
