The Nikkei Average extended its advance this week, closing at ¥66,364, up ¥1,345 from the previous Friday. While buying for fiscal year-end dividends may run its course next week, dip-buying is expected to remain the basic trend with interest rates in focus.
The Nikkei Average extended its advance this week despite only 2 trading days, closing at ¥66,364. Buying was dominant against a backdrop of movements in AI and semiconductor-related stocks and trends in the US market, while the impact of dividend-related buying was significant in terms of supply and demand, amid a period of rising long-term interest rates. Analysis indicates that even at current levels, dividend yields remained relatively attractive as a return on equities.
Next week may see buying for fiscal year-end dividends run its course, while dip-buying with an eye on interest-rate trends is expected to continue. Some market participants have indicated that any decline at this point would present a buying opportunity, although the direction of the market is ultimately expected to depend on interest rates and overseas market trends.
Technically, the Nikkei Average has maintained its rebound pattern without falling below the 26-week moving average, which is around ¥64,359. A rebound at this key level has been confirmed, and movements around this line are expected to provide a near-term signal.