The Nikkei average extended its gains in the morning session. Buying led the market after AI-related stocks rose in the US market during the holiday break, but gains narrowed as developments in the US and China and concerns over interest rates weighed on the market.
The Nikkei average extended its gains in the morning session on the Tokyo stock market, rising approximately ¥864 from the previous day to ¥65,883.41. Buying centered on AI and semiconductor stocks, and the Nikkei briefly recovered to the ¥66,000 range.
Advantest, Ibiden and Tokyo Electron, the 3 stocks that contributed most, lifted the Nikkei by approximately ¥600. The sustained elevation of US long-term interest rates and investors' wait-and-see stance ahead of the US-China summit limited market moves.
US long-term interest rates remained elevated, while domestic long-term interest rates stood at 3.055%, near levels last seen 30 years ago. Weakness in US stock futures in after-hours trading also capped gains.
Reports that the US and China may extend their trade truce, along with remarks by Chinese President Xi Jinping, weighed on investor sentiment. Trading value on the TSE Prime Market exceeded approximately ¥4.8731 trillion, and gainers outnumbered decliners, with advances prevailing among individual stocks.