The Nikkei Average was up around ¥950 in morning trading, supported by gains in US stocks. News that the US Treasury would expand its buyback operation for Treasury securities spread the momentum from higher US stocks to the Tokyo market.
The Nikkei Average was trading around ¥66,280 shortly after 10 a.m., approximately ¥950 higher than the previous day. In the US market, the Treasury announced that it would expand the scale of its Treasury buyback operation to up to $4 billion. US Treasury yields fell, and the Dow Jones and Nasdaq rebounded for the first time in 4 days.
In the Tokyo market the following morning, buying led the market on the back of gains in US stocks. The Nikkei Average rose by more than ¥64 at one point, while the yen-denominated settlement price for Chicago Nikkei futures was ¥65,960, up ¥480 from the previous day.
By sector, 30 of the 33 sectors rose. Nonferrous metals, transportation equipment, electric power and gas, information and communications, and pharmaceuticals were generally firm, while individual shipping and warehousing and harbor transportation stocks underperformed. In the foreign exchange market, the dollar was slightly softer against the yen in the 10 a.m. hour, while the yen was strengthening against the euro.
Buying linked to gains in the US market continued overall. Among individual stocks, Mitsui Mining & Smelting, Sumitomo Metal Mining, Toyota, Honda, and Tokyo Electric Power Company Holdings were active.