The Tokyo stock market had narrowed its gains by the morning close. Buying in AI-related stocks ran its course, while gains in SoftBank Group were also capped.
The Nikkei average narrowed its gains during morning trading as early buying in AI-related stocks ran its course. SoftBank Group, which had briefly risen more than 5% in the morning session, was up only around 1% at the time of writing.
The Nikkei average rebounded sharply again after the afternoon open, with broad-based buying supported by a pause in oil price gains and firm U.S. stock futures. The TOPIX was also mixed. Some market participants said buying in AI-related stocks following SpaceX's results was providing support.
The morning close marked a sharp rebound, with the Nikkei average ending approximately ¥748 higher than the previous day and the TOPIX up approximately 44 points. Strong results from U.S. SpaceX were viewed as indicating expansion in the AI market, prompting AI stocks to widen their gains.
However, concerns about the financial condition of AI companies remain strong, and the market was aware of limited upside after the initial buying ran its course. Following the move after the afternoon open, stable domestic interest rates were cited as a positive factor after the close.