On the 30th, Japanese equities rebounded for the first time in 3 sessions as expectations for US rate hikes receded, while medium-term bond yields fell as the yen strengthened. Buying in AI and semiconductor-related stocks and calmer oil price movements supported the market.
On the 30th, Japanese equities rebounded for the first time in 3 sessions and extended their gains in the afternoon. As expectations for US rate hikes receded, buying spread mainly across technology stocks, and the Nikkei 225 significantly extended its gains.
The Nikkei 225 rose more than ¥1,400 at one point, while the TOPIX also traded higher. Buying in AI and semiconductor-related stocks was notable, and gains in value stocks such as banks, trading companies, information and communications, and nonferrous stocks also provided support. Nidec turned higher, while the yen rose to the low ¥156 range against the dollar at one point.
The yen moved higher, and a strategist at Minato Bank pointed to the impact of real-demand dollar selling and the repatriation of funds. In bonds, yields fell mainly on medium-term issues. The Ministry of Finance's 2-year interest-bearing government bond auction drew a bid-to-cover ratio of 3.89 times, indicating demand, and was absorbed without disruption.
Some said that the market's calm following the retreat in rate-hike expectations, along with Japanese and US financial markets influenced by US interest-rate movements, was driving the market in the short term.
The article notes that some sections use Bloomberg Automation.