Snapshot: The Nikkei 225 is trading at 62714, up 95 points (+0.15%) in today’s session, driven by firm domestic yields. JGB 2Y yields remain stable at 1.369%, while the 10Y is slightly lower, supporting risk appetite in the face of renewed geopolitical concerns stemming from the Middle East.
- Watch JGB 10Y yield; a break above 2.50% could trigger profit-taking.
- Geopolitical tensions in the Strait of Hormuz pose a downside risk, potentially offsetting domestic tailwinds.
Bias into NY: We expect the Nikkei 225 to remain supported above 62500, given stable domestic yields and positive sentiment from US futures; however, any escalation in geopolitical tensions could quickly reverse gains.