【Today's Market】March 26｜Open high fades, upward momentum weighs on the outlook

The Tokyo market on the 26th started strong at the open but gradually gave up its gains.

The Nikkei Stock Average closed at 53,603 yen, down 145 yen from the previous day.

Overall, it was a slight decline and a day lacking in decisiveness.

In the previous day’s U.S. market, concerns eased as crude oil futures fell, with the Dow and Nasdaq both ending higher.

Following that trend, the Tokyo market opened with buying interest.

However, that momentum did not last long.

As time passed, the gains gradually narrowed.

By midday, selling dominated, and the market moved into negative territory.

There was some buying back toward the close, but the price movement remained directionless throughout.

The backdrop remains the Middle East situation.

With Iraq and other factors, the outlook remains highly uncertain and weighs on the market.

Additionally, during Japan time, WTI crude futures rose to over $92 per barrel at one point.

This sour sentiment cooled the morning’s buying mood.

Given that prices had surged in the past two days, profit-taking selling was certainly likely.

Nevertheless, even after accounting for that, the overall market looked somewhat weak.

In recent days, the market rises do not persist, and declines are followed by a bounce.

Such unsettled movement has continued.

Ultimately, the market direction depends on the Middle East situation.

Until this framework changes, a heavier upper range is likely to continue.

◆ Today’s Market Summary

・Nikkei average closed slightly lower at 53,603 yen, down 145 yen
・U.S. market rose due to crude oil declines
・Tokyo market fell after an early gain, trading range-bound
・Oil rose to the $92 range at one point
・Middle East situation (including Iraq) remains a weight

◆ Investor Notes

Looking at the recent price movements, the market is clearly being driven by external factors.

Even when it rises, gains do not last long, and minor news can shift the trend, creating an unstable situation.

In such an environment, it’s important to respond flexibly to market changes rather than forcing a directional call.

As for the Middle East situation, a buildup of up to about 10,000 U.S. troops could culminate in the Middle East region this weekend.

In any case, it feels as though the market may move significantly.