The Nikkei Average narrowed its losses from the morning close and recovered to the ¥66,000 level. The afternoon session is expected to be range-bound, with buying to cover short positions in semiconductor-related stocks and resource and market-related stocks supported by higher crude oil prices providing support, while gains are expected to be capped by high-priced stocks.
The Nikkei Average was reported at ¥66,008.45, down 208.34 from the previous day, while TOPIX stood at 4,054.66, down 5.07. The afternoon session is expected to see range-bound trading around the morning close.
Losses in the morning session narrowed, and resource and market-related stocks were bought against a backdrop of buying to cover short positions in semiconductor-related stocks and higher crude oil prices. However, high-priced stocks are weighing on the indices, leading to the view that gains will remain limited.
Firm crude oil futures prices and rising US long-term interest rates are making market sentiment more cautious, while some investors are waiting for clarity ahead of NVIDIA's earnings announcement in the US on the 26th next week. Disappointing US retail earnings and another rise in long-term interest rates could also provide selling catalysts, according to some analysts. Investors continue to wait for direction from US markets tonight.