Snapshot: The Nikkei 225 is currently trading at 59285, down 0.34% on the session, pressured by a modest rise in domestic JGB yields. The upcoming Tokyo Core CPI release at 08:30 JST will be closely watched for further clues on the BoJ’s policy outlook.
- Watch JGB 10Y yield; a break above 2.55% could trigger further Nikkei downside.
- Risk: Stronger-than-expected US data could exacerbate the JGB yield pressure and weigh on the Nikkei.
Bias into NY: Expect continued choppy trading in the Nikkei, with a slight downside bias, contingent on JGB yields remaining elevated; a break below 59000 would open the door to further losses.