Tokyo Stocks Likely to Remain Susceptible to Iran Situation

Tokyo, April 3 (Jiji Press)–Tokyo stocks are expected to remain sensitive to news about the situation involving Iran next week, while equity indexes are likely to be also swayed by developments related to artificial intelligence and semiconductors. This week, the benchmark Nikkei 225 stock average shed 249.58 points, or 0.47 pct, to end at 53,123.49 on Friday. The Nikkei lost a total of about 2,300 points on Monday and Tuesday, weighed down by declines in U.S. equities late last week and a rise in crude oil prices. On Wednesday, it rallied more than 2,600 points amid hopes for a de-escalation of tensions in the Middle East ahead of a speech by U.S. President Donald Trump. However, disappointment spread after the speech, pushing the Nikkei below 53,000. Next week, the Nikkei is forecast to move roughly between 52,000 and 54,000, market sources said. Uncertainty remains over the situation surrounding Iran. Trump has given Iran until next Monday U.S. time to allow the resumption of shipping through the Strait of Hormuz. Nevertheless, he warned in the speech that the United States could launch heavy attacks over the next two to three weeks. Still, an official of a Japanese asset management firm pointed out that the stock market “has not collapsed despite rising oil prices,” adding, “Any positive news suggesting the reopening of the Strait of Hormuz could prompt buying.” The Tokyo stock market is expected to be relatively quiet early next week, following the U.S. stock market’s closure for Good Friday. but will still likely react to the U.S. government’s employment report for March, due out Friday. Meanwhile, a series of U.S. inflation-related indicators will be announced next week. On the domestic front, the Bank of Japan is set to hold a regional branch managers’ meeting on Monday. Earnings announcements from companies that close their books in February and August will begin in earnest. “Individual investors are eager to hunt for stocks,” said an official of a major brokerage firm. “With the earnings season getting underway, the market is unlikely to tumble.” END [Copyright The Jiji Press, Ltd.]