In the Tokyo stock market on the morning of the 16th, the Nikkei Stock Average rebounded sharply, temporarily rising by more than approximately ¥1,200 and recovering to ¥65,452 in reaction to the previous day's decline. Buying to cover positions following the previous day's sharp decline, along with gains in US stocks, was the main factor.
In the Tokyo market on the morning of the 16th, the Nikkei Stock Average rebounded sharply, temporarily rising by more than ¥1,200 and recovering to the ¥65,000 range. It was trading at ¥65,452.47, up approximately ¥1,026.52 from the previous close, while TOPIX rose 65.19 points to 4,064.53. Buying in stocks with strong earnings pushed up the broader market, and buying generally prevailed.
The previous day's gains in US stocks also provided support, and the Nikkei advanced broadly. Market participants noted that concerns about the profitability of AI-related stocks had not been completely dispelled, and some semiconductor-related stocks were sold in the afternoon session.
The backdrop included the Nikkei's sharp decline the previous day, which was influenced by concerns over deteriorating finances among AI data-center-related companies and widespread selling of semiconductor stocks in the New York market on the 14th. A rise in the September US CPI had strengthened expectations of an early rate hike by the US Federal Reserve, weighing on market sentiment.
While the rebound on the 16th is viewed as largely a correction of excessive selling, uncertainty over the earnings performance of AI-related companies, the situation in the Middle East and rising US crude oil futures remain factors limiting the upside. Uncertainty remains over a full-fledged medium- to long-term reversal.