Whether the Nikkei 225 can hold above ¥70,000 is the focus, with afternoon trading expected to center on buying in steel, nonferrous metals and financials following the morning's gains.
The Nikkei 225 stood at ¥70,081.53, up ¥134.67 from the previous day. TOPIX was at 4,163.61, up 18.39 points.
For the afternoon investment strategy, the Nikkei 225 is trading well above its 75-day moving average, leading to the view that buying on dips near the downside is likely.
If the weaker-yen, stronger-dollar trend continues in the foreign exchange market, export-related stocks are expected to benefit.
By sector, buying is flowing into market-sensitive sectors such as steel and nonferrous metals, as well as financials, while information and communications remain soft. The breadth of afternoon buying is the focus.