In morning trading on the 5th, the Nikkei Stock Average opened higher in the Tokyo stock market. Against a backdrop of easing concerns over the US midterm elections, the Nikkei was up about ¥300 and trading around ¥62,500.
The Nikkei Stock Average rose at the opening of morning trading on the 5th, gaining about ¥300 from the previous day and trading around ¥62,500. Buying spread across the Japanese market following gains in US stocks, amid easing concerns over US politics. The gain temporarily exceeded ¥400.
In the previous day's US stock market, the Dow Jones Industrial Average rose sharply, marking its strongest recent gain in 1 year and 7 months. In the US midterm elections held on the 3rd, the Democratic Party was expected to win control of both houses of Congress, while President Trump indicated that he intended to accept the result. Easing concerns over US politics improved risk tolerance in the Japanese market.
A sharp drop in crude oil prices also supported an improvement in investor sentiment. The front-month WTI contract fell to the low $87 range on the 4th, well below the previous day's closing level of around $96. Expectations that lower oil prices would benefit Japan's economy and corporate earnings prompted buying in stocks.
The Tokyo Stock Price Index (TOPIX) also traded higher, with Fast Retailing, Recruit and KDDI rising, while SoftBank Group, Advantest and TDK fell.