【Fujitomi】Nikkei average falls again as reports about exit from Bank of Japan policy and the Kyiv US embassy explosion news are souring sentiment
The Nikkei Stock Average ended lower, closing at 19,909.26 yen, down 75.36 yen (0.38%) from the previous day. With Bloomberg reporting a shift from an emphasis on timing to a focus on explanations regarding the Bank of Japan’s exit strategy, long-term interest rates rose and the yen appreciated. Also of concern were reports such as Iran’s declaration of “retaliation for terrorism” and possible involvement by Saudi Arabia, and an explosion at the U.S. Embassy in Kyiv. Ahead of key Western events on the 8th, selling to square positions was dominant. At one point the Nikkei average briefly dipped below 19,900.
TOPIX also fell, ending down 0.42% at 1,590.41, a decline of 6.68 points from the previous day. The Tokyo Stock Exchange First Section’s trading value was 2,529.9 billion yen, with a trading volume of 1,983.75 million shares. The number of declining issues on the First Section was 1,198, rising issues were 698, and unchanged were 121.
Nikkei futures for June rose slightly for the first time in five days, finishing 20 yen higher at 19,970, with a trading volume of 24,818 contracts. The Nikkei futures closed with small-bodied candles showing upper and lower shadows. The gap from the 1st to the 2nd was filled, but the close surpassed the conversion line (19,905 yen). It appears to be supported at the 25-day moving average (19,813 yen); however, the position of the Nikkei after tonight’s Western events remains of interest. Tomorrow is major SQ, drawing attention to whether it will clear 20,000.
