Snapshot: The Nikkei 225 is holding onto gains near 63,300, driven by continued optimism surrounding domestic technology and AI stocks, spurred further by SoftBank’s portfolio companies potentially pursuing US IPOs. Focus will remain on assessing the broader implications of BoJ Board Member Koeda’s speech in Fukuoka regarding economic activity, prices, and monetary policy in Japan. No key Japanese macro prints are scheduled before the New York open.
- Watch for follow-through from SoftBank; a break above 63,500 would signal further upside.
- Geopolitical tensions related to Iran could introduce downside risk, particularly for energy-sensitive Japanese names.
Bias into NY: Bullish, as domestic drivers and improved risk appetite are likely to outweigh external headwinds; look for a test of 63,500. Declining US real yields provide an additional tailwind.