The Nikkei 225 opened ¥530 higher, but buying failed to continue and gains subsequently leveled off. The market may have been influenced by developments in U.S. stocks, concerns over a Federal Reserve rate hike and caution ahead of the Bank of Japan's monetary policy meeting.
The Nikkei 225 rose sharply at the open in the Tokyo market. As of 9:05 a.m., it was up ¥530 from the previous day. Buying was dominant immediately after the open, but gains subsequently leveled off slightly.
In the U.S. stock market, the Dow fell sharply, while the Nasdaq remained slightly lower. Gains in the Philadelphia Semiconductor Index (SOX) and movements in AI-related stocks supported the Tokyo market, while stability in crude oil futures also provided reassurance.
In the foreign exchange market, the yen weakened and the dollar strengthened to around ¥155.90 per dollar, supporting earnings outlooks for exporters. At the same time, buying momentum was tempered by caution ahead of the Federal Reserve's rate-hike decision and the announcement of the results of the Bank of Japan's monetary policy meeting.