The Nikkei Average opened higher, with buying spreading to semiconductor-related stocks after the four-day decline through the previous session. It traded at around ¥67,950 during the morning session, with gains in AI and semiconductor stocks lifting the index.
The Nikkei Average opened higher in morning trading on the 14th and traded at around ¥67,950, approximately ¥180 above the previous day's close. The rebound was apparently driven by bargain buying after four consecutive declines.
AI and semiconductor-related stocks pushed the market higher. Stocks including Advantest were bought, while Tokyo Electron and Kioxia also rose. Large-cap technology stocks had fallen in the U.S. market the previous day amid growing concerns about intensifying competition in semiconductor memory, prompting bargain hunting that supported the market in early trading.
Higher oil prices and uncertainty surrounding U.S.-Middle East developments provided the backdrop, with New York crude oil futures at around $95. The TOPIX also briefly turned lower, with falling bank stocks weighing on the index. Olympus fell sharply after an FDA warning letter, as uncertainty over its future regulatory response fueled selling.
Although the market attempted to recover after the sharp decline on the previous day, the outlook for the sustainability of the rebound remains cautious because uncertainty persists over U.S. semiconductor stocks and the situation in the Middle East.
Overall, semiconductor and AI-related stocks saw buying during the Nikkei Average's rebound, while uncertainty remains around individual stocks and related factors.