Nikkei Struggles Above 50,000, a Sign of Starting Fatigue? | Nikkei Ngerem di Atas 50.000, Tanda Mulai Lelah?

The Nikkei index is expected to open cautiously on Friday, trading within the 50,000 area after a sharp rally over the past week. Nikkei futures are expected to move only slightly around 50,100, in line with projections for a flat opening for Asian markets as the global rebound begins to lose steam. The previous day, the Nikkei had risen around 1.2% and closed around 50,167, driven by positive sentiment from hopes of a Fed rate cut in December, which has revived investor risk appetite.

From a fundamental perspective, the market's focus this morning is on Tokyo inflation data, which returned to 2.8% year-on-year in November, slightly above market expectations of 2.7% and remaining above the Bank of Japan's 2% target. This figure maintains speculation that the BOJ could raise interest rates again at its December 18-19 meeting, potentially limiting the Nikkei's movement in the early session. At the same time, expectations of a Fed interest rate cut continue to underpin global sentiment, leaving investors in Japan in a "wait-and-see" situation: weighing the potential for a continued stock rally against the risk of pressure from possible gradual BOJ tightening. (az)

Source: Newsmaker.id