Snapshot: The Nikkei 225 closed 0.72% higher at a record 69,902, propelled by a stellar 17% year-on-year surge in May exports that comfortably absorbed the Bank of Japan’s 25 basis point rate hike to 1%. Solid international demand for domestic semiconductors and automobiles powered big-tech leadership, with Lasertec jumping 13.2% and Tokyo Electron gaining 2.5%. This robust local corporate outlook is further insulated by a soft USD Broad Index at 119.5073 and easing US Treasury yields.
- Key Technical Level: The psychological 70,000 mark is the immediate target; holding above the previous breakout zone at 69,500 confirms structurally bullish domestic demand.
- NY Session Watch-Item: The US 08:30 ET macroeconomic data releases; any hot print that pushes the US 10-year yield back above 4.50% could spark temporary cross-asset profit-taking.
Bias into NY: We remain tactically bullish targeting a sustained break above 70,000, as exceptional Japanese export momentum shields corporate earnings from the BoJ’s hawkish pivot, while a depressed VIX at 16.2 keeps the global risk backdrop supportive.