Japanese stocks are expected to open with a slight buying bias on the 25th, with buying back positions in TOPIX-related stocks likely to be in focus. Dip-buying is expected in response to developments in the US market and the ongoing depreciation of the yen.
In the previous session, the Dow fell sharply while the Nasdaq edged higher, with elevated long-term US interest rates and rising crude oil prices weighing on the market. After rising through the previous session, the Nikkei Average saw position adjustments, and the Tokyo market may develop with investors looking for dips.
Chicago Nikkei 225 futures sought higher ground relative to Osaka. During the night session, they fell to around ¥65,675 before being bought up to ¥65,890 after trading began in the US, then ended the daytime session around ¥65,490. The view was presented that the 25-day moving average at ¥65,318 is likely to attract attention as a support level.
Some US semiconductor stocks were sold, and the SOX Index edged lower. Stocks such as Advantest, Tokyo Electron and Kioxia Holdings showed little activity after the initial buying ran its course, and the possibility of short-term futures-led selling was also noted.
Although the Nikkei Average rose for a fourth consecutive session the previous day, declining issues accounted for more than half of TSE Prime stocks, as semiconductor and AI-related stocks drove the market. Buying back positions in TOPIX-related stocks is likely to be in focus ahead of the US-China summit, but caution over rising interest rates and crude oil prices remains strong.