【Fujitomi】Nikkei Stock Average extends gains as yen strengthens pauses and U.S. stocks rise provide tailwinds

The Nikkei average ended higher, closing at 18,418.59 yen, up 63.33 yen from the previous day. Following the previous day's gains in U.S. stocks and a rest in the yen’s appreciation, it traded in a firmer tone. On the other hand, caution over geopolitical risks and the mood to assess the trends in the U.S.-Japan economic dialogue kept the upside in check. Vice President Pence of the United States indicated that all options are possible regarding North Korea, and he clarified that President Trump intends to seek a peaceful resolution in cooperation with Japan, China, and South Korea, but the market impact was limited.

The TOPIX also rose, ending up 5.84 points at 1,471.53. The trading value on the Tokyo Stock Exchange First Section was 1.7744 trillion yen, and the trading volume was 1.57522 billion shares. The number of advancing issues on the First Section was 1,494, decliners 415, and unchanged 106.

Nikkei stock futures for June rose for the first time in six days (up 80 yen to 18,440 yen), recouping the 5-day moving average (18,400 yen) by the close. If the close exceeds the conversion line (18,520 yen), the near-term target would be the 10-day high (18,850 yen). Conversely, if geopolitical risks push the market into a decline, the downside target is expected to be the 17th low (18,190 yen).

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