The Nikkei Average rose 1.75% to 65,550.68, led by a technical rebound following the sharp sell-off. TOPIX also posted a sharp rebound, rising 1.83% to 4,072.71, with index-led short covering standing out.
The Nikkei Average posted a sharp rebound of 1.75% from the previous day, reaching 65,550.68. TOPIX also rose to 4,072.71, up 1.83%, as the market was lifted by a short-term improvement in supply and demand. Several news reports highlighted a technical rebound following the sharp sell-off as the main theme, prompting investors to cover short positions.
Some market participants also believe selling into the rebound will cap further gains. Whether risk-on trading will continue depends on U.S. inflation trends and interest rates as macroeconomic factors. Market participants are seeking to assess the sustainability of the rebound supported by the short-term improvement in supply and demand.
In these circumstances, assessing individual stocks and sector trends will be important, and attention is expected to focus on upcoming news and economic data releases.