Snapshot: The Nikkei 225 is currently trading at 62418, down 1.24% on the day, retreating from record highs. The primary domestic driver appears to be profit-taking after the recent surge, compounded by surging oil prices stoking inflation concerns.
- Watch JGB 10Y yield at 2.51%, any further rise may add pressure.
- Risk of further decline if US equity futures reverse their course.
Bias into NY: Cautiously bearish. With profit-taking underway and inflation concerns looming, the Nikkei 225 could test lower levels. A break below 62393 would signal further weakness.