The Nikkei Average posted a modest gain at the morning close, returning to the ¥67,000 range. With the release of US July CPI approaching, the market lacked a clear direction, and few market participants were active during the summer holiday period.
In the Tokyo stock market on the morning of the 12th, the Nikkei Stock Average rose to around ¥70 above the previous day's level at the morning close, reaching ¥67,040.18. Buying led in major AI- and semiconductor-related stocks, while overall trading activity remained subdued due to the summer holiday season.
Following the previous day's movements in US equities, funds flowed into high-priced stocks, particularly semiconductor-related shares, supporting the index. Market participants pointed to a wait-and-see mood ahead of the US CPI release, with a strong reluctance to take on risk.
The TOPIX also edged higher. Marine transportation, nonferrous metals and machinery stocks performed well, while selling was also seen in electricity and gas, land transportation and retail stocks. Going forward, the focus will be on the US CPI results and the resulting movements in long-term interest rates and foreign exchange rates. Depending on the results, growth stocks could be affected.
Market participants said that a larger-than-expected slowdown in the inflation indicator could revive expectations of interest-rate cuts, while a stronger-than-expected increase could intensify risk-averse trading.
The report conveys a market situation in which attention is focused on future developments, including movements in US CPI, long-term interest rates and foreign exchange rates.