The Nikkei Average continued to rise through the morning close, with buying back shares prevailing against a backdrop of higher U.S. stocks. Attention will focus on whether the market can maintain its upward momentum in the afternoon, while caution remains over upcoming U.S. earnings and events.
The Nikkei Average ended the morning session at ¥66,227.55, with estimated trading volume of approximately 875.28 million shares. The U.S. market closed with the Dow up $160.24 and the Nasdaq up 171.11 points. Following the U.S. market's performance, selling prevailed in the Japanese market after the open, but the decline in crude oil futures and U.S. long-term interest rates in overseas markets prompted a shift toward buying back shares.
Among individual stocks, SoftBank Group, Advantest, Chugai Pharmaceutical, Recruit Holdings, Daiichi Sankyo, Sony Group, Sumitomo Metal Mining, Daikin Industries, Tokio Marine, Otsuka Holdings, Toyota Tsusho, Bandai Namco Holdings, FUJIFILM, Astellas Pharma and Suzuki rose. Tokyo Electron, Kioxia Holdings, Taiyo Yuden, TDK, Ibiden, Lasertec, Fujikura, SCREEN Holdings, Disco, Shin-Etsu Chemical, Murata Manufacturing, Furukawa Electric, HOYA and Honda declined.
In the afternoon, the market is expected to continue carefully assessing buying opportunities based on the morning's moves, while the Nikkei Average is expected to move sideways near its highs. With the 75-day moving average viewed as resistance on the upside, some market participants say the room for further gains could be limited depending on NVIDIA's earnings this evening, the FRB chair's speech at Jackson Hole on 28 August, and movements in crude oil futures and U.S. long-term interest rates.
With U.S. corporate earnings and announcements of important events ahead, views are spreading that investors should assess the market's direction. For now, the Nikkei Average is expected to move around the ¥66,300 level, with market participants intending to monitor developments while keeping an eye on oil prices and interest rates.