[Today’s Market] March 25 — Broad gains dependent on external factors; active stock picking for individual issues

Tokyo market on the 25th saw buying sweep across a wide range of stocks right from the opening.

The Nikkei Stock Average ended higher by 1,497 yen at 53,749 yen.

Continuing the rise from the previous day, buying spread across the market.

In the previous US market, uncertainty over the Middle East situation remained in focus, with both the Dow and Nasdaq finishing lower.

Although the market faced headwinds at higher levels, buying continued in the Tokyo market, in contrast to that trend.

From the opening, strong buying came in, with 32 of 33 sectors higher.
Not only the Nikkei Average, but also the TOPIX and the Growth 250 Index rose in unison, signaling a broad advance.

Behind this is a stabilization in energy prices.

WTI crude oil futures remained around the 88 dollars per barrel range, and the easing of excessive inflation concerns contributed to buying confidence.

If crude oil prices stabilize in the 80-dollar range, the market is likely to move in a relatively calm manner.

On the other hand, the market still remains led by external factors.

President Trump has been reported to deploy not only the marines already dispatched but also an airborne force of about 3,000 troops, intensifying the push for a quick settlement of the Iran situation.

This weekend, will there actually be an amphibious operation, or will it move toward a diplomatic resolution?

The direction of the market could change significantly depending on the outcome.

In this environment, what stood out was,capital inflows into individual stocks.

While the indices rose, money also concentrated in thematic stocks.

Tokio Marine & Nichido Holdings rose for two consecutive days due to expectations of collaboration with Berkshire Hathaway.

Also, Shares of Net Advertising Group, which were sold off, surged for two consecutive days on the news regarding crypto assets involving Takafumi Horie.

In addition to the index movement, capital flowed straightforwardly into these individual factors, andthe market shows strong gains for strong themeswhich is notable.

Although it was a broad-based up day, the market direction remains heavily influenced by Middle East developments.

Rather than having excessive expectations for a short-term rise, it is wise to respond cautiously while assessing changes in external conditions.

◆ Today’s Market Summary

・Nikkei average up 1,497 points to 53,749
・US market declines on Middle East concerns
・Tokyo market broad-based gain with 32 of 33 sectors up
・WTI crude around the 88-dollar range
・Tokio Marine & Nichido and Net Advertising Group hit two consecutive limit-ups

◆ Investor Notes

Today’s rise is underpinned by a sense of relief from stabilized oil prices, but the market remains led by Middle East developments.

In particular, depending on US military actions and President Trump’s decisions, the market could swing sharply.

I think Middle East developments this weekend deserve particular attention.

Will a settlement be found and the war end?

Or will ground operations begin?

This could significantly change the stock market.

I will monitor the situation closely and respond with due caution.