In the middle of the morning session on the 21st, Tokyo stocks posted sharp gains, with the Nikkei temporarily rising more than ¥1,300, although the market faced resistance on the upside. Gains in AI- and semiconductor-related stocks provided leadership, while buying spread on the back of SpaceX's earnings.
The Nikkei Stock Average was sharply higher from the previous day, with gains continuing as of 10:15 a.m. Easing crude oil price increases and a rebound from the previous day's decline supported buying, which spread across a broad range of stocks.
AI- and semiconductor-related stocks were cited as market leaders, with SoftBank Group, Tokyo Electron, Advantest, Ibiden and TDK among the stocks trading higher. SpaceX reported earnings above market expectations in the U.S. market, and its share price rose in after-hours trading, also providing a tailwind.
While market participants viewed growth in the AI market and the outlook for capital investment as supporting confidence, concerns about financial conditions remain entrenched, and some expect the market to continue facing resistance on the upside after the initial wave of buying subsides.
At the open, the Nikkei started sharply higher, with expectations for an easing of tensions in the Middle East and stability in U.S. crude oil futures acting as buying catalysts.
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