The Nikkei Average opened on the Tokyo Stock Exchange on the 5th up ¥196.10 at ¥62,384.73, marking the start of a rebound. While higher US stocks and a sharp drop in crude oil prices provided support, AI and semiconductor stocks remained a drag.
The Nikkei Average rose ¥196.10 from the previous day at the open to ¥62,384.73. Trading began with buying leading the market, following gains in the three major US stock indexes the previous day.
Supportive factors for the market included the resilience of US stocks, which were pricing in the US midterm election results, and a sharp drop in crude oil prices amid expectations of easing tensions in the Middle East. Expectations are growing that lower oil prices will help improve corporate earnings and ease the burden on households.
Among leading stocks, Toyota Motor surged, while Sony Group and Fast Retailing remained at indicated bid prices. AI- and semiconductor-related stocks, meanwhile, plunged, and there were occasions when the three stocks of SoftBank Group, Tokyo Electron and Advantest dragged the market lower.
In the previous day's trading, the three AI- and semiconductor-related stocks alone at times dragged the Nikkei Average down by approximately ¥1,241, and the index continues to show large swings depending on the stocks involved. Attention will focus going forward on a recovery in AI and semiconductor stocks and trends in macroeconomic indicators.
Overseas factors include the upcoming release of the US ADP employment report and the ISM Services Index, while earnings announcements by domestic companies could also affect the market.