The Nikkei 225 posted a modest rebound in the afternoon session, although its gains narrowed. USD/JPY fell sharply, driving the yen higher, while SoftBank Group and Tokyo Electron were cited as the top contributors to gains among the stocks to watch in the afternoon session.
The Nikkei 225 ended the morning session with a modest rebound, with estimated trading volume at 945.73 million shares. Buybacks led the market higher against the backdrop of the previous day's gains in US equities and lower long-term interest rates, but selling from investors waiting for a rebound narrowed the gains. US markets rose on the strength of technology stocks, and the Japanese market also opened firmly.
In the afternoon session, the Nikkei 225 traded in a range around the morning closing level, remaining well below its 75-day moving average. Some market participants expect selling from investors waiting for a rebound to remain prevalent amid developments in long-term US interest rates, the situation in the Middle East and oil prices.
USD/JPY rose to a high in the ¥158 range before falling into the ¥157 range, with the dollar weakening and the yen strengthening. European currencies were firm against the dollar, while movements in US interest rates continued to weigh on the market.
Dynamic Map Platform, Morpho and 2 other stocks hit their daily limit up among the names to watch in the afternoon session. SoftBank Group was the top contributor to gains, followed by Tokyo Electron in 2nd place.
Among economic indicators, China's RatingDog Services PMI for August improved from the previous month to 51.4. In comments from central bank officials, remarks by Fed Governor Waller at a panel discussion were reported.