Markets Score 42 Bullish

Nikkei Eyes Recovery Following Two-Day Slide

Apr 30, 2026 23:00 UTC

NKY, TM, HMC, NSANY, SFTBY, CL=F, GOOGL, QCOM, CAT

Immediate term

The Japanese equity market seeks a rebound after losing over 1,200 points in two sessions. Positive momentum from Wall Street and easing energy costs provide a bullish backdrop for Friday's trade.

Nikkei 225 closed at 59,284.92 after a 1.06% daily drop
Automotive stocks including Toyota (-2.86%) and Mazda (-2.60%) led losses
US indices reached record highs, supporting a positive outlook for Asia
WTI crude retreated to $104.48 per barrel
Market awaiting April Tokyo inflation data

The Nikkei 225 is positioned for a potential reversal after a two-day losing streak that saw the index drop more than 2% to close at 59,284.92. The recent decline was characterized by sharp sell-offs in the automotive and financial sectors, with Toyota, Honda, and Mizuho Financial experiencing significant retreats. Market sentiment is expected to shift as Asian bourses track record-breaking gains from the United States. The S&P 500 and NASDAQ both reached new highs, fueled by strong corporate earnings reports from Alphabet, Qualcomm, and Caterpillar, providing a firm lead for global equities. Commodity price movements have also provided relief. West Texas Intermediate (WTI) crude oil fell 2.3% to $104.48 a barrel as profit-taking occurred following a four-year peak, easing some of the inflationary pressures associated with Middle East tensions. Looking ahead, investors are pivoting toward the release of April inflation figures for Tokyo. With March core CPI having climbed 1.7% year-on-year, the upcoming data will be critical for traders assessing the trajectory of Japanese monetary policy and domestic price stability.