Tokyo stocks came under pressure as a stronger wait-and-see stance emerged ahead of an FRB speech, with the Nikkei 225 narrowing its gains temporarily during the afternoon session. In the morning session, buying of AI-related and strong-earnings stocks provided support, while semiconductor-related stocks also rose, but elevated oil prices and movements in long-term interest rates capped gains.
The Nikkei 225 rose further at the opening of the afternoon session, but gains subsequently stalled overall as market participants adopted a stronger wait-and-see stance ahead of a speech by FRB Chair Kevin Warsh. Continuing the morning session's trend, buying of some semiconductor-related stocks and AI-related issues pushed up the index at times.
The afternoon session closed approximately ¥550 above the previous day's level, rebounding. Buying of software-related stocks also remained firm during the day, while the Tokyo Stock Price Index, or TOPIX, traded at a high level. Trading volume was approximately 854 million shares and trading value was approximately ¥3.3898 trillion, indicating active trading.
In the 10 a.m. hour, the Nikkei 225 at one point extended its gain to more than ¥400 from the previous day, as buying of some AI-related issues pushed up their share prices. Meanwhile, crude oil futures remained elevated amid uncertainty over the situation in the Middle East, and some market participants said rising long-term interest rates could cap gains in stock indexes.
Overall, the day's trading saw semiconductor-related stocks and AI-related issues support the market, while buying and selling crossed amid a perceived lack of fresh market catalysts, with range-bound conditions continuing.