The Nikkei Average extended its gains sharply in Tokyo trading at the start of the week, at one point topping ¥66,000. Buying orders concentrated in AI-related and semiconductor stocks.
The Nikkei Average extended its gains sharply in Tokyo trading at the start of the week. Buying spread to semiconductor stocks after positive developments for the sector emerged in U.S. trading at the end of the previous week, prompting buying orders focused on AI-related stocks. The Nikkei Average briefly recovered to above ¥66,000, while the morning session close was ¥66,460.11.
The morning session opened ¥579.48 higher than at the end of the previous week, at ¥65,600.42, and moved in a high range after 10 a.m. Investors were focused on the resilience of demand related to AI in U.S. equity markets, where an index comprising major semiconductor stocks had risen.
However, buying did not spread across the market as a whole, and about 40% of stocks on the Prime Market declined. Banks, pharmaceuticals, retail and food stocks remained weak, and the TOPIX's rate of increase was smaller than that of the Nikkei Average.
Market participants have expressed uncertainty about the outlook for AI-related stocks, partly because of pressure for bond yields to rise, particularly in the United States. The market is closely watching whether positive developments for semiconductor-related stocks will lead to sustained buying across the sector. In afternoon trading, attention will focus on U.S. stock futures and movements in the yen.