Snapshot: The Nikkei 225 closed up 0.72% at a fresh record high of 69,902, driven by a blockbuster 17% year-on-year surge in May exports that underscored resilient global demand for Japanese automotive and semiconductor tech. This export-led optimism has handily absorbed the Bank of Japan’s hawkish 25 basis point rate hike to 1% yesterday, proving that corporate earnings power remains the dominant market force.
- The index’s tech-heavy profile remains highly constructive, with semiconductor heavyweights Lasertec (+13.2%) and Tokyo Electron (+2.5%) spearheading the break above the 69,000 handle on massive volume.
- For the NY session, watch the US 08:30 ET data print; any aggressive repricing of US yields (currently 2Y at 4.07%) could trigger yen volatility, potentially impacting exporters if the currency sharply strengthens.
Bias into NY: We hold a bullish bias for N225 futures targeting the 70,200 level as domestic corporate momentum overrides near-term BoJ policy tightening, with the positive tone supported by a softer US dollar index at 119.5073 and easing energy price pressures.