Buying in semiconductor-related stocks drove the market, while game-related stocks remained soft. Expectations that semiconductor stocks would continue to lead the afternoon session were in focus, while a wait-and-see mood also spread ahead of key events.
The Nikkei 225 was up sharply from the previous day at 64067.10, while in the morning session stocks with a large impact on the index, including Advantest and Tokyo Electron, rose. Buying centred on semiconductor-related stocks supported the market, while the TOPIX edged lower, showing a divergence between the indices. The Nikkei 225 recovered to the ¥64,000 range.
A focus of afternoon trading strategy was the earnings announcements scheduled after the close on the 28th from leading Japanese companies including Advantest and Hitachi. Market participants wanted to assess their earnings outlooks and trends in capital investment for AI. The outcome of the US Federal Open Market Committee meeting and earnings from major US IT companies are forthcoming, as are the ECB policy rate announcement and the release of the Bank of Japan meeting decision.
The key question going forward is whether the semiconductor-led rise will spread to other sectors. As an investment strategy, attention was focused on the performance of related stocks and the results of major events.