Snapshot: The Nikkei 225 is currently trading at 64693, down 0.21% on the day, pressured by a pullback in technology shares. A decline in JGB yields, with the 2Y down 3bp to 1.356% and the 10Y down 2bp to 2.701%, is weighing on sentiment.
- Watch for the reaction to today’s Tokyo Core CPI y/y print at 08:30 JST, which is expected to remain unchanged at 1.5%.
- Continued weakness in tech, as highlighted by overnight wire reports regarding optical tech squeezes, could accelerate declines.
Bias into NY: Expect continued consolidation in the Nikkei, potentially testing the lower end of today’s range around 63881, unless the Tokyo CPI significantly surprises; broader risk sentiment, as reflected in US futures which are currently down, will likely reinforce the cautious mood.