[Today's Market] March 24 — Rebound yet the upside remains heavy, markets continue to be swayed by Middle East tensions

In the Tokyo market on the 24th, buying dominated a wide range of stocks from right after the trading session began.

The Nikkei Stock Average ended trading at 52,252 yen, up 736 yen from the previous day.

From a sharp drop the previous day, it turned to a rebound for the time being.

In the previous day’s U.S. market, President Trump announced delaying his statement on attacking Iran’s infrastructure facilities for five days.

In response, excessive vigilance regarding geopolitical risks eased, and both the Dow Jones and Nasdaq finished higher.

Following this trend, the Tokyo market also saw buying pressure from the open.

There were moments when gains widened significantly, but later the gains gradually narrowed, signaling resistance at higher levels.

However, it was notable that buying became favorable again in the afternoon.

Because buying on dips is becoming more common during declines, signs of excessive market pessimism seem to be easing for now.

On the other hand, the energy market remains unsettled.

WTI crude oil futures are hovering around $89 per barrel, but the situation remains one trigger away from large movements.

Another material to watch is that on the 27th, thousands of U.S. Marines are being dispatched with Iran as a consideration for an amphibious operation.

At present there has been no full-blown conflict, but as such military movements continue, the possibility of rapid changes in conditions should always be kept in mind.

Today the Tokyo market rebounded, but the market leadership remains locked in external factors.
It can be said that the environment continues to be one in which short-term price movements are easily swayed by fluctuations.

◆Market Summary for Today

・Nikkei is up 736 points to 52,252, a rebound
・U.S. markets rose on Trump’s remarks (Dow and Nasdaq)
・Open was strong, but gains narrowed and then recovered again
・WTI crude oil around $89
・U.S. Marines dispatched with Iran in mind

◆Investor Note

This rebound is attributable to a temporary retreat of geopolitical risk, and it is still premature to conclude that the market trend has changed.

From the movements of the U.S. military, the Middle East situation remains unstable, and future developments could cause the market to move significantly again.

In such a scenario, rather than harboring excessive expectations for short-term gains, it is essential to always act with risk awareness.
We should continue to monitor external environmental changes and calmly face the market.