In the afternoon session on the 12th, the Nikkei Average is expected to trade range-bound around ¥67,000. Higher crude prices and a stronger dollar are weighing on the market, while gains in large-cap stocks such as Tokyo Electron and Recruit Holdings are expected to provide support. Attention in the afternoon session will focus on stocks that may hit the daily price limit and on the performance of companies reporting earnings.
The Nikkei Average continued to trade range-bound around ¥67,000, ending the morning session at ¥67,040.18. Against the backdrop of movements in US equity markets, rising crude oil prices and moves in long-term interest rates affected investor sentiment, and trading was expected to remain without a clear direction in the afternoon session. Among individual stocks, Tokyo Electron, Recruit Holdings, Advantest, TDK and Kioxia Holdings rose, with movements in stocks making significant contributions to the index supporting the market.
Dollar-yen moved slightly firmer, fluctuating modestly from the lower to the upper ¥159 range. As NYMEX crude oil futures moved into the $84-per-barrel range, dollar buying driven by higher crude prices progressed, while major currencies weakened against the dollar.
The Nikkei Average was expected to remain range-bound around ¥67,000 in the afternoon session, with buying of semiconductor stocks likely to continue at lower levels. Stock-specific buying based on earnings announcements could provide support for the market, while some also expect fund flows into the mining and banking sectors, which benefit from higher crude prices, to contribute to the index's resilience.
サンテック and フィーチャ were cited as stocks to watch in the afternoon session. Tokyo Electron was expected to be the top contributor, with Kioxia Holdings in second place. No particular economic indicators were scheduled to provide a catalyst, but attention would be paid to machine tool orders and economic data trends in various countries.