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Highlights:
Nasdaq's rally on Friday supports a bullish opening for Japan's Nikkei 225.
Positive U.S. earnings results and favorable global sentiment influence expectations.
Traders are anticipating a strong start for Nikkei 225 on Monday, April 28.
As trading resumes in Tokyo, the Japanese stock market looks set for a positive opening on Monday, April 28, 2025. The Nikkei 225, which is a benchmark index for Japan's economy, often follows trends in the U.S. markets, especially the Nasdaq, due to the shared focus on technology and export-driven sectors.
Following a strong rally in the U.S. stock market on Friday, attention shifts to the Japanese market, where the Nikkei 225 is poised to mirror the positive momentum. The Nasdaq Composite Index ended the week with a notable increase, which sets a bullish tone for global equity markets, particularly in Asia.
Impact of Nasdaq’s Performance on Nikkei 225
The Nasdaq’s impressive surge of over one percent provides a boost to the sentiment in Asian markets, particularly for Japan. On the final trading day of the week, the Nasdaq rose significantly, closing with a solid gain, driven by favorable corporate earnings and a decline in concerns surrounding U.S. monetary policy.
This performance is expected to reverberate through the Asian markets, with the Nikkei 225 being particularly responsive to such movements due to its composition of technology and export-heavy companies. Additionally, strong performances from other Asian indices such as TAIEX and KOSPI further support the optimism.
Market Outlook for Nikkei 225
With the global risk-on sentiment spurred by positive earnings in the U.S. and the easing of concerns surrounding the Federal Reserve’s stance on monetary policy, expectations for the Nikkei 225 are favorable. Market participants are eyeing an opening that is likely to show a strong upward trend. The overnight cues from global markets, particularly the surge in the Nasdaq, are indicating a positive start for Japan’s benchmark index.
Factors Influencing Monday's Trading
Key drivers for Monday’s trading include the positive momentum seen in global equities, particularly the U.S. market. The Nasdaq’s strong close has helped boost investor sentiment worldwide, contributing to expectations of a bullish opening for the Nikkei 225. Furthermore, the ongoing recovery in Asian markets and the continuing positive momentum from U.S. corporate earnings should provide additional support for the Nikkei 225’s performance.
Asian Market Sentiment
Asian markets, including Japan’s Nikkei 225, have seen an uptick in investor sentiment, largely due to the strength of global markets. As the positive performance in the Nasdaq has shown, favorable economic conditions in the U.S. often lead to a spillover effect in Asia, particularly for export-heavy economies such as Japan.
The Nikkei 225, which is often influenced by the same factors driving the Nasdaq, is expected to follow a similar path. In addition to the broader market sentiment, Japan’s domestic economic indicators may also play a role in shaping the trading landscape. However, global factors remain the primary drivers for expectations at this time.
Anticipated Opening Level for Nikkei 225
Given the optimistic global cues and the upbeat performance from the U.S. markets, traders are anticipating a positive start for the Nikkei 225 on Monday. It is expected that the index will open higher, with projections pointing toward an increase in the range of a few hundred points. This would position the Nikkei around the thirty-five thousand nine hundred to thirty-six thousand mark, barring any significant domestic economic headwinds.
