The Nikkei Average ended higher on the previous day amid trading ahead of U.S. semiconductor company Nvidia's earnings announcement on the 26th, although localized trading and position adjustments led to somewhat greater movement in the afternoon session.
The Nikkei Average on the 26th closed at ¥66,262.16, after moving between gains and losses against the previous day, with estimated trading volume at approximately 1.85 billion shares. The market opened lower on selling to adjust positions, but dip-buying gradually emerged, pushing the index into positive territory toward the end of the morning session and driving further gains in the afternoon.
By stock, more than 950 issues on the TSE Prime Market rose, accounting for over 60% of the total, while 18 sectors, including securities and commodity futures, services, insurance and banking, advanced. Meanwhile, 15 sectors, including marine transportation, oil and coal products, metal products and mining, declined. Among major stocks, Advantest, SoftBank Group, Recruit Holdings and Tokio Marine rose, while Fast Retailing, Kioxia Holdings and Taiyo Yuden fell.
U.S. markets rose on lower crude oil prices and declining long-term interest rates. In Tokyo, however, selling to lock in near-term gains led the way ahead of Nvidia's earnings, with the Nikkei Average at one point falling more than ¥450. Crude oil prices subsequently paused their decline following reports concerning developments at the U.S. State Department, while easing inflation concerns supported investor sentiment.
Ahead of Nvidia's earnings, management comments supporting gross profit margins and the sustainability of growth, which are likely to attract investor interest, could trigger renewed buying of AI-related stocks. On the other hand, depending on the results, semiconductor-related stocks could face a risk of short-term weakness.