The Nikkei 225 rebounded for the first time in 3 sessions, closing ¥890.37 higher than the previous day at ¥66,216.79. The TOPIX also rebounded, rising to 4,059.73. Investor sentiment improved against a backdrop of falling interest rates, and a broad range of stocks rose, led by AI-related issues.
Tokyo markets rebounded for the first time in 3 sessions, with the Nikkei 225 closing ¥890.37 higher than the previous day at ¥66,216.79 and the TOPIX ending 47.42 points higher at 4,059.73. The move was driven by a pause in the rise in long-term interest rates in Japan and the United States, and a broad range of stocks, including AI-related issues, attracted buying. Approximately 85% of stocks rose, while 13% fell. Trading volume was 2.25115 billion shares, and trading value was ¥8.6034 trillion.
The yen strengthened to the mid-¥158 range against the dollar before losing momentum, standing at around ¥158.43 per dollar as of 5 p.m. European currencies were rangebound against the yen, while the euro strengthened against the dollar. Bond futures extended their gains, with the benchmark contract for long-term Japanese government bond futures ending at ¥126.72.
Tokyo crude oil futures fell sharply, with the settlement price for the benchmark contract down ¥1,930 from the previous day at ¥75,310. Crude oil prices were believed to have declined against a backdrop of yen appreciation and dollar weakness.
The July trade deficit widened significantly to ¥634.5 billion, while the value of exports and imports reached their highest levels. July prices for new condominiums in Tokyo's 23 wards were reported to be around ¥260 million, near a record high.
As additional news, the government is expected to request a defense budget of ¥8.9 trillion, with reports indicating that it is likely to be increased further during the year-end budget compilation.