The Nikkei 225 opened ¥226 higher, supported by gains in U.S. stocks the previous day. The market got off to a firm start, supported by moves in AI-related and semiconductor stocks.
The Nikkei 225 opened on the 12th at ¥61,475.11, up ¥226.52 from the previous day, while the TOPIX was at 3,943.52, up 14.13 points. Tokyo stocks attracted early buying after U.S. equities rebounded. The Dow ended trading up $254.60 and the Nasdaq up 400.31 points, with strength in AI-related stocks spreading to the Nikkei. High-tech stocks led the market, while gains in the SOX Index also provided support.
In the foreign exchange market, the dollar moved toward a weaker yen and stronger dollar, trading in the ¥159.70 range to the dollar. Expectations that a recovery in overseas demand would improve domestic companies' earnings outlooks gained ground. As earnings announcements by major domestic companies continued, there was also a view that demand for stocks reporting strong results would support share prices. Meanwhile, rising crude oil futures weighed on investor sentiment, while selling by investors waiting for a rebound and short-term profit-taking were also likely to emerge.
Before the open, the domestic corporate goods price index for October was reported to have risen 7.1% year on year, compared with the 6.5% median private-sector forecast compiled by QUICK. In weekly data on purchases and sales of domestic and foreign securities, overseas investors were net sellers of Japanese stocks for the first time in 3 weeks, with net sales totaling ¥105.2 billion. SUMCO, Resonac and DOWA were among the leaders by trading value on the Tokyo Stock Exchange Prime Market. With gainers and decliners mixed, oil and coal products, electric power and gas, and chemicals advanced by sector, while nonferrous metals and transportation equipment declined.