The Nikkei Average turned from an initially sell-led market to one driven by buybacks, closing the morning session at ¥66,227.55. Although the morning session opened lower, buying on dips spread and the index moved into positive territory.
In the morning session on the 26th, the Nikkei Average on the Tokyo Stock Exchange opened down ¥251.94, but buying back shares then spread and the index moved into positive territory. It closed the morning session up ¥371.12 from the previous day at ¥66,227.55. TOPIX also rose, standing at 4,118.44 at the morning close.
Although gains in U.S. stocks supported the Tokyo market, the Nikkei Average's 25-day moving average in the ¥65,600 range and 75-day moving average in the ¥66,300 range were watched as overhead resistance, leading to growing views that the index's short-term upside was limited.
Investors cited Nvidia's earnings announcement and the market's after-hours reaction, movements in crude oil futures prices, and long-term U.S. Treasury yields as key factors, saying they wanted to assess these developments.
The afternoon session was expected to see the Nikkei Average consolidate near its highs. While the market's firm downside was attracting attention, some viewed the rebound trend, the first in 3 sessions, as likely to continue supporting the market.
Market participants said they would closely watch Nvidia's earnings and the stock's after-hours reaction, as well as movements in crude oil and long-term U.S. Treasury yields, to assess the market's future direction.