Domestic stocks staged a sharp rebound, with the Nikkei Average rising to ¥70,037.61, up 2.53% from the previous day. Higher US stocks also supported the market, strengthening the risk-on tone.
Domestic stocks staged a sharp rebound, with the Nikkei Average surging to ¥70,037.61 (+2.53%). The TOPIX rose on an index-led basis to 4,138.57 (+1.16%), and the overall market was dominated by a buyback tone. Overseas markets were firm, with the Dow Jones up 0.49%, the S&P 500 up 0.73% and the NASDAQ up 1.19%, providing a tailwind in many instances.
Market participants said funds had flowed back into stocks with high index contribution, describing the move as a period showing strong risk appetite. At the same time, amid a sharp rebound, investors are also watching for the risk of a short-term correction, including profit-taking after buying subsides and slower movement in large-cap stocks.
Among individual stocks, buying on supply-demand factors was likely to return to SoftBank Group as a large-cap growth stock, while Tokyo Electron benefited from its high overseas sales ratio in semiconductor manufacturing equipment. Sony Group and Nintendo, which also have high overseas exposure, became active. Toyota Motor was expected to see relatively firm demand following improved external conditions, while the strength of financial stocks was in focus for Sumitomo Mitsui Financial Group.