The Nikkei 225 extended its gains in the afternoon session on strength in US tech stocks. Having erased its morning losses, the market is focusing on favorable US earnings and firm employment indicators as key factors for investment strategy.
In the afternoon session, the Nikkei 225 turned higher from the morning open and is expected to trade in a high range through the close. The index was down as much as 27 yen in the morning, but views spread that downside would remain firm.
In the US market, buying continued on favorable reactions to earnings from NVIDIA and Salesforce, while employment-related indicators also came in strong. Against this backdrop, appetite for tech stocks is expected to remain firm.
The Nikkei 225 has remained above its 75-day moving average in the 66400-yen range, making it a focus whether this level will turn into downside support. Market participants are taking a wait-and-see stance toward this level.
The Fed chair is scheduled to speak tonight at the Jackson Hole conference in Wyoming. Some market participants want to assess the market's reaction, while others point out that selling on rallies is likely to emerge.