The Nikkei 225 rebounded sharply on 4 September amid gains in US stocks and short-covering, closing ¥806.46 higher at ¥65,020.94. The upward trend was already clear in the morning, and the index recovered to the ¥65,000 level.
The Nikkei 225 ended trading at ¥65,020.94 on 4 September, up ¥806.46 from the previous day, recovering to the ¥65,000 level. The gain exceeded ¥600 during the morning, and buying intensified toward the close.
The Tokyo Stock Price Index (TOPIX) closed at 4,103.23, up 1.19 points, with trading volume at approximately 2.21033 billion shares. Buying spread across sectors, particularly technology stocks, while some small- and mid-cap stocks saw profit-taking.
A tailwind for the market was a speech by Federal Reserve Governor Waller. Views spread that excessive pricing-in of the probability of a rate hike had receded, prompting short-covering in US stocks. This encouraged fund inflows into technology stocks, including semiconductor-related shares.
With the market having declined for 4 consecutive sessions through the previous day, buying to test a rebound gained momentum. Market participants believe the extent of future gains could vary depending on US inflation trends and the Federal Reserve's policy stance, while conditions in the Middle East and currency movements remain risk factors.