TSE Growth Market 250 Futures Struggle with Mixed Trading

The Tokyo Stock Exchange (TSE) saw mixed trading on its Growth Market 250 Index futures, despite opening higher with the Nikkei Stock Average at around 64,400. The index gained approximately 200 points from the previous close, driven by momentum from gains across all three major U.S. equity indexes in the prior session.

Buying was led by artificial intelligence (AI) and semiconductor-related names, including SoftBank Group (9984.T), Advantest (6857.T), and Fujikura (5803.T). However, profit-taking pressure on trading company stocks that had posted notable gains the previous day weighed on the Tokyo Stock Price Index (TOPIX), which opened lower.

U.S. long-term interest rates moved lower after Federal Reserve Governor Waller said 'signs of slowing inflation are beginning to emerge', sparking a pullback in expectations for near-term rate hikes. This led to buying in cyclicals and mega-cap tech stocks, with the Dow Jones Industrial Average closing up 624.16 points at 53,686.11.

TSE Growth Market 250 Index futures saw buying in early trading, but overhead supply from profit-taking is likely to cap upside. Key resistance levels include the 5-day moving average (788 pts), the Ichimoku conversion line (791 pts), and the upper Bollinger Band sigma (800 pts).