The Nikkei 225 extended its gains on broad-based buying despite a temporary decline during the morning session. Against a backdrop of easing concerns over the situation in the Middle East and gains in U.S. stocks, the Nikkei 225 rose to ¥66,227.55 at the morning close.
The Nikkei 225 extended its gains in the Tokyo stock market on the morning of the 26th, closing the morning session up ¥371.12, or 0.56%, from the previous day at ¥66,227.55. Excessive concerns over the situation in the Middle East eased, while the market carried over the momentum from the rise in U.S. stocks on the 25th. Following the gains in U.S. equities, buying prevailed across a broad range of stocks in Tokyo, particularly major issues.
The Tokyo Stock Price Index (TOPIX) rose 24.77 points to 4,118.44, showing stronger performance than the Nikkei 225. Stocks in sectors including banking, securities and pharmaceuticals advanced, and the widening gain in the TOPIX helped push up the Nikkei 225. The Nikkei 225 fell by more than ¥400 at one point in the morning, but as the TOPIX remained firm, short covering became more active in Nikkei futures and other instruments.
The morning session opened at ¥65,604.49, down ¥251.94 from the previous day, marking a decline at the open. Technology stocks, including semiconductor-related issues, fell and weighed on the stock indexes. As concerns over an escalation of fighting in the Middle East eased and investor sentiment improved with lower crude oil prices and U.S. interest rates, some AI-related stocks that had been weak in the morning turned higher. The Nikkei 225, which had remained in negative territory through the middle of the morning session, moved into positive territory.
Market participants believed that profit-taking selling had emerged in AI-related stocks ahead of Nvidia's earnings announcement. An analyst at a major securities firm said, "There is no clear negative catalyst for AI-related stocks, so profit-taking selling is likely emerging ahead of Nvidia's earnings announcement." Meanwhile, the easing of concerns over an escalation of fighting in the Middle East supported stock prices through its effect on investor sentiment, and the market was generally firm outside the AI-related sector, with 70% of Prime Market stocks rising.