The Nikkei 225 rebounded for the first time in 3 sessions in the Tokyo stock market on the 20th, closing at ¥66,216.79, up ¥890.37 from the previous day. Gains in U.S. stocks and the firm KOSPI provided support.
The Nikkei 225 rebounded for the first time in 3 sessions in the Tokyo stock market on the 20th, closing at ¥66,216.79, up ¥890.37 from the previous day. Gains widened toward the morning close, and the index at one point came close to being up ¥1,000 in the afternoon session.
The rise was supported by gains in the major U.S. indexes, including the Dow Jones Industrial Average, Nasdaq and S&P 500, in the previous day's U.S. stock market, as well as a decline in long-term U.S. Treasury yields, which improved investor sentiment. Market conditions were conducive to dip-buying to recover the losses recorded by the Nikkei 225 through the previous day.
Overseas market trends also supported the Tokyo market, with a sharp rise in South Korea's benchmark stock index, the KOSPI, encouraging buying by short-term traders. One view is that this prompted buying of Nikkei 225 futures.
Factors that capped gains included a continued decline in the SOX Index, uncertainty surrounding U.S.-China and Middle East developments, and persistently high crude oil prices. In the foreign exchange market, the yen strengthened and the dollar weakened, with the exchange rate moving into the lower half of the ¥158 range per dollar, but buying gradually gained the upper hand after the open.