The Nikkei remained capped on the upside in the middle of the morning session on the 29th. AI and semiconductor-related stocks were bought following the post-FOMC trend in the U.S., with buying of AI-related stocks spreading after the opening.
The Nikkei Stock Average remained capped on the upside through the 10 a.m. hour, carrying forward the trend in which the FOMC passed without incident in the previous day's U.S. market and favorable reactions to earnings from South Korean semiconductor giant SK Hynix and U.S. IT giant Oracle prompted buying, particularly in AI and semiconductor-related stocks. Buying also gathered pace in AI and semiconductor stocks in the Tokyo market, pushing up the broader market.
A market participant said, "SK Hynix's earnings had already been largely priced in, so the Nikkei's momentum on the upside is likely to be limited." The Nikkei opened at ¥64,126.25, up ¥172.06 from the previous day, and extended its gains while maintaining its buying momentum.