The Nikkei Average moved back and forth from the previous day's close, holding firm in the morning session, although gains were limited. AI-related stocks attracted buying on the back of gains in US semiconductor stocks, while heightened tensions in the Middle East also curbed market activity as a concern.
In the morning session in Tokyo on the 22nd, the Nikkei Average moved back and forth around the previous day's close of ¥64,621. Advantest and other related stocks attracted buying after gains in US semiconductor stocks the previous day, while the momentum behind buying in AI and semiconductor-related stocks weakened, although the index at one point extended its gain to around ¥200 during the session.
In US markets, semiconductor stocks remained strong, with the SOX index rising nearly 2% on the morning of the 22nd. After-hours trading following earnings announced by Meta Platforms was also viewed positively, and buying gathered in some AI and semiconductor-related stocks in Tokyo, supporting the Nikkei Average.
Once the initial buying subsided, however, gains in related stocks were capped, and Advantest briefly turned lower. Tokyo Electron and Ibiden fell, while selling was prominent in Lam Research's after-hours trading. Developments in US stocks, particularly major technology stocks, also capped the Nikkei's upside.
Reports from Reuters and other news organizations brought renewed attention to tensions in the Middle East, and the view spread that higher crude oil prices could weigh on the Japanese economy as a downside risk. The TOPIX extended its advance and supported the Nikkei, while among individual stocks, Recruit, BayCurrent, and Taiyo Yuden rose, whereas SoftBank Group, Fujikura, and SCREEN fell.