The Nikkei Stock Average opened sharply higher and closed substantially above the previous day’s level. Although momentum faded in the afternoon against the backdrop of gains in U.S. stocks, the index ended with a sharp rebound, while trading volume and value also remained high.
U.S. stocks were mixed at the end of the previous week, with the Dow declining while the Nasdaq rose. The SOX Index also posted a sharp gain, and the Nikkei Stock Average opened ¥525.93 higher during the day. Buying aimed at a technical rebound spread after the opening, and gains widened, led by semiconductor-related and bank stocks, with the index moving above ¥59,000 toward the end of the morning session. U.S. stock index futures and firm Asian stocks provided support at times in the afternoon, but upside became heavier after the initial wave of buying, and the gain narrowed toward the close.
The Nikkei Stock Average closed at ¥58,775.50, up ¥1,340.73 from the previous day. Trading volume was 2.99581 billion shares and trading value was ¥8.9118 trillion. By sector, other products, banks and transportation equipment rose, while foods and marine transportation declined. More than 90% of Nikkei Stock Average constituents rose, and the market ended trading with a sharp rebound overall.