The Nikkei average opened 248 yen higher on 4 September in the Tokyo market. Gains in US stocks provided support, while the stronger yen and Middle East risks weighed on the market. Attention may now shift to the US employment report and oil market trends.
The Nikkei average rebounded at the open on 4 September, starting 248 yen higher than the previous day. Buying led the market after major US stock indexes rose in the previous session.
After the opening, the market traded narrowly. The Dow Jones Industrial Average rose 1.18% and the Nasdaq Composite rose 1.40% in the US market, while the SOX index gained just 0.11%. Investment sentiment toward semiconductor-related stocks became more cautious.
In the foreign exchange market, the yen strengthened and the dollar weakened, with the yen moving to the mid-¥155 range per dollar. Concerns about the earnings environment for export-related companies also prompted some investors to hold back from buying. In addition, uncertainty over the situation in Iran and elevated oil futures prices weighed on investor sentiment.
While some market participants wanted to assess the results of the August US employment report, AI-related stocks were identified as a potential driver of the market. The Nikkei average is expected to trade in a range of ¥64,000 to ¥64,800.