The Nikkei Average rebounded for the first time in 3 days, opening ¥406.37 higher at ¥65,732.79. The TOPIX also stood at 4033.85 at the start of the morning session, supported by gains in US stocks and lower long-term interest rates.
The Nikkei Average rebounded at the open of the Tokyo market on the 20th, moving to recover the losses through the previous day. Gains in US stocks the previous day and lower long-term interest rates encouraged buying, with the Nikkei at ¥65,732.79 at the open, up ¥406.37. The TOPIX also got off to a firm start at 4033.85.
The July trade balance, announced at the same time, was a deficit of ¥634.5 billion, below the median private-sector forecast. Weekly data on securities transactions with domestic and overseas investors showed overseas investors were net buyers of Japanese stocks for the first time in 3 weeks, with net purchases of ¥621.2 billion. The buying helped improve market sentiment.
Among individual stocks, Kansai Electric Power, Daiichi Sankyo, Nintendo, Honda, Toyota Motor and Sony Group advanced, while Nippon Steel, SCREEN Holdings, TAIYO YUDEN, Murata Manufacturing, Tokyo Electron, Lasertec, Mitsubishi UFJ Financial Group and Renesas Electronics declined. By sector, gains were particularly notable in transportation equipment, real estate, rubber products, electric power and gas, and Other Products, while banks, warehousing and harbor transportation services, marine transportation and other financing businesses declined.
US market trends and foreign exchange movements also had an impact. A decline in the SOX Index weighed on semiconductor-related stocks, while persistently high crude oil prices and the outlook for US interest rates made investors more cautious. The dollar moved into the latter half of the ¥158 range against the yen, and trading continued to be influenced by developments in the New York market.