[Today's Market] March 31 — After a wild swing, it slowed, lacking a clear direction
The Tokyo market on the 31st opened with selling from the moment trading began.
The Nikkei Stock Average finished down 822 yen at 51,063 yen compared with the previous day.
There was a moment in the morning when it fell by nearly 1,300 yen,
but it then rebounded sharply, briefly returning to positive territory.
However, that momentum did not last long.
Along with the uncertainty in Middle East affairs and position adjustments at month-end,
it slowed again into the afternoon session.
On the previous day in the U.S. market,the Dow Jones Industrial Averagerose, whilethe Nasdaq Composite Indexfell.
Furthermore, the SOX index, a semiconductor-related indicator,fell about 4%as a result,
leading selling in the Tokyo market, especially among tech stocks.
Among them, buoyed temporarily by remarks from President Trump and movements in crude oil prices,
we also saw moments of buyback.
Nevertheless, there were not enough catalysts to turn the trend upward,
and the day ended up being directionless.
◆ Market Wrap for Today
・Nikkei average fell 822 yen to 51,063 yen
・Opened weak, then rebounded sharply but lost momentum in positive territory
・U.S. markets: Dow rose, Nasdaq fell, SOX index down about 4%
・Middle East tensions and month-end factors kept gains capped
・Nikkei around 51,000 to 51,000 level as a support
◆ Investor Notes
Today's price movements symbolize a market with no clear direction.
When it falls, buyers step in,
when it rises, it is sold.
In other words, it’s not a trend but a phase of being bounced around within a range.
In such an environment,
・If you tilt toward optimism, you catch the top
・If you tilt toward pessimism, you exit at the bottom
tends to fall into a classic losing pattern.
The FX market is again hovering around 160 yen per dollar, with intervention risk being reconsidered in focus.
Additionally, from tomorrow the April market begins.
Important indicators such as the Bank of Japan’s Short-Term Outlook will be in focus, and there is ample possibility that the trend could change here.
This is not a moment to force action.
Rather than going for it,
one should prioritize not being swung around in this market.
Until the next clear direction emerges,
calmly maintaining a wait-and-see stance is required.