Snapshot: The Nikkei 225 is trading up 1.55% at 72354, driven by continued strength in AI-linked Japanese firms. The Bank of Japan’s Semiannual Report on Currency and Monetary Control, released early this morning, provided no immediate hawkish surprises, allowing the rally to extend.
- Nikkei 225 at all-time highs, driven by tech and AI infrastructure plays.
- Watch for any shifts in BoJ rhetoric or forward guidance in the Summary of Opinions today.
Bias into NY: The path of least resistance remains higher for the Nikkei, with the domestic AI theme showing no signs of abating. We expect this strength to persist into the New York open, though a sharp reversal in US yields could temper the enthusiasm.