【Fujitomi】Nikkei stock average hits an all-time high so far this year; attention turns to talks between the U.S. and North Korea in Norway starting today
The Nikkei Stock Average rose for a third consecutive business day, gaining 450 yen (2.31%) to 19,895.70 yen, a new year-to-date high for about two months since March 13. The large positive contribution came largely from Macron's victory in France's presidential election on the 7th, which significantly reduced concerns that the country would exit the eurozone. In the foreign exchange market, the yen weakened against major currencies, and foreign investors were seen buying major stocks and the Nikkei futures. TOPIX also climbed to a new year-to-date high, finishing at 1,585.86, up 35.56 (2.29%) from the previous trading day. The trading value on the TSE First Section reached 3 trillion 443.4 billion yen, the highest since December 9, 2016.
Also noteworthy in the market is the unofficial U.S.-North Korea meeting taking place in Norway from today into tomorrow, amid ongoing tensions between the United States and North Korea. Participants will include U.S. and Norwegian experts and North Korea’s Foreign Ministry officials, and Choe Son-hui, head of the U.S. affairs bureau and a key figure in negotiations with the United States, is also expected to attend. Last week, President Trump said he would meet Chairman Kim Jong Un "if the circumstances are right," indicating ongoing maneuvering toward dialogue amid tense U.S.-North Korea relations. However, it appears that U.S. government officials will not attend this meeting, and North Korea's intentions are expected to be conveyed through experts.
Nikkei futures closed with a notably bullish candle. While there is no strong resistance at the 20,000 level, the deviation from the 25-day moving average exceeds 5%, signaling overheating. The TSE First Section’s advance/decline ratio (25-day moving average) stands at 112.80, the highest in a month and a half since March 17, suggesting a need for some tempo adjustment.
