The Nikkei average was flat near its high in Tokyo trading on the afternoon of the 24th. Buying in AI and semiconductor-related stocks supported the market, while views spread that higher long-term interest rates would have only a limited impact on the market as a whole.
Around the middle of the afternoon session on the 24th, the Nikkei average was flat near its high, moving in the upper ¥65,800s, approximately ¥870 above the previous close. Buying in AI and semiconductor-related stocks, supported by gains in U.S. semiconductor stocks, is supporting the broader market. Some market participants said the impact of higher long-term interest rates on the equity market as a whole remains limited for now.
In the domestic bond market, long-term interest rates rose further in the afternoon. The long-term interest rate briefly reached 3.075%, renewing its highest level since August 1996, while the 5-year bond yield also reached a record high. Some high-valuation stocks attracted buying, while steel and electric power and gas stocks faced selling, but the impact on the Nikkei average was limited.
With a U.S.-China summit meeting approaching, many market participants are believed to be taking a more cautious, wait-and-see stance. Senior Fellow Itoshima Takatoshi (糸島 孝俊) commented, “Many investors want to determine whether the decline in oil prices will continue after the U.S.-China meeting.”
As of 2 p.m., trading value on the Tokyo Stock Exchange Prime Market was an estimated ¥633.85 billion, while trading volume was 1.56399 billion shares.
Among individual stocks, SCREEN extended its gains, while Advantest and Ibiden remained at high levels. Trading-house stocks, including Itochu and Mitsubishi Corp., declined.