The Nikkei Average moved into positive territory from its level at the morning open and ended the morning session slightly higher. The market is expected to trade within a range around the morning session's levels in the afternoon, while a cautious stance is also evident ahead of this week's earnings announcements and the Federal Reserve meeting.
The Nikkei Average closed at ¥65,598.68, up ¥70.59 from the previous day. The TOPIX rose 13.44 points to 4,086.73.
The morning session opened down ¥332.83, with the market falling sharply at one point, but it moved into positive territory during the day, highlighting the firmness of the downside.
The Nikkei Average's 75-day moving average is in the ¥66,200 range, and some market participants believe that short-term upside is limited, with this level serving as resistance.
Nvidia's earnings are scheduled for the 26th, followed by a speech by the Federal Reserve Chair at Jackson Hole on the 28th. Some market participants want to assess these events before taking further positions.