Snapshot: The Nikkei 225 struggled overnight, last seen down 0.44% near 60,550, even after Japan’s Q1 GDP exceeded expectations. Stronger economic growth has seemingly been offset by lingering Middle East tensions.
- Watch for follow-through selling if the Nikkei breaks below 60,000, a key psychological level.
- Rising US real yields and a firmer dollar pose a headwind to Japanese equities; monitor for any escalation in risk aversion.
Bias into NY: Cautious bias on the Nikkei. While the domestic growth outlook appears supportive, external pressures from a stronger USD (broad index at 119.28) and higher US yields could limit upside potential, especially as the VIX is bid.