Japanese stocks rose immediately after the opening on the 7th, with the Nikkei 225 briefly gaining more than ¥1,300. Buying of semiconductor-related stocks in the U.S. market spread to AI- and semiconductor-related stocks domestically.
Tokyo stocks opened broadly higher on the 7th, with the Nikkei 225 briefly rising more than ¥1,300. As buying of U.S. semiconductor stocks continued, the yen traded generally around ¥156 to the dollar. Bond futures also rose, and overall risk appetite was strengthening.
Domestically, AI- and semiconductor-related stocks attracted buying, with shares such as SoftBank Group and Advantest gaining. Buying of undervalued stocks, including trading companies and automakers, was also seen as supporting the market.
Hirakawa Shoji (平川昇二), chief global strategist at Tokai Tokyo Intelligence Lab, said that stability in domestic interest rates could lead to gains in high-tech stocks, particularly semiconductor stocks. He also said that the PPI and CPI due this week could determine the market’s subsequent direction, and that trading could become more difficult from the middle of the week onward.
In the U.S. market, the August employment report showed payrolls increasing by more than expected, raising the probability of a rate hike in September to around 60%. Meanwhile, President Trump has been stepping up pressure on the Federal Reserve, and warnings were also issued concerning trade with countries and regions running trade surpluses with the United States.