Snapshot: The Nikkei 225 climbed 1.65% to a record close of 71,053, fueled by a powerful domestic bid in megabanks and semiconductor giants. This structural rally is underpinned by crucial energy-import relief for Japan following the Hormuz Strait agreement, which completely overshadowed overnight Wall Street weakness. The domestic bid comfortably absorbed an overnight spike in the VIX to 18.44.
- Mega-cap financials provide the cleanest signal of domestic momentum, with Sumitomo Mitsui jumping 4.3% and Mitsubishi UFJ up 3.1% as cash equity allocators rotate into yield-sensitive value.
- Semiconductor sustainability is the key risk for the NY session, where Tokyo Electron’s 4.7% gain faces a test if US 10Y real yields at 2.14% trigger global tech profit-taking.
Bias into NY: We are structurally bullish N225 toward the 71,500 level, as the domestic banking and tech squeeze shows zero signs of exhaustion. Any tactical dip driven by US rates volatility will be met with aggressive Japanese corporate buying support near 70,500.