Snapshot: The Nikkei 225 closed at 62,743, boosted by tech strength and AI optimism. However, rising oil prices are stoking inflation concerns, as reflected in the BoJ’s latest meeting minutes.
- Watch for further signals from the BoJ regarding additional rate hikes at upcoming meetings, particularly given upside risks to energy prices.
- Heightened geopolitical risks, particularly regarding the US-Iran situation, could weigh on sentiment.
Bias into NY: Cautiously bullish, but expect the Nikkei’s upside to be capped near recent highs, around 62,800, as traders digest the BoJ’s hawkish lean and monitor potential spillover from US yield moves and risk sentiment. US 10-year yields are currently at 4.38%, and watching the 10Y Breakeven at 2.47% for signals.