Snapshot: The Nikkei 225 is up 1.79% to 66330, driven by strong domestic retail sales and industrial production data released overnight. This positive momentum is further supported by a weaker Yen as JGB yields remain relatively stable, with the 2Y at 1.364% and the 10Y at 2.655%.
- Watch for resistance around the day’s high of 66505.
- Risk: A sharp reversal in US yields could trigger profit-taking in Nikkei.
Bias into NY: We expect the Nikkei to hold onto gains, underpinned by domestic economic strength; a break above 66505 would open the door to further upside. DXY strength could cap further gains.