The Nikkei Average rebounded and traded in positive territory, but gains were limited. Morning trading was affected by declines in U.S. stocks, although short covering accelerated in the afternoon.
The Nikkei Average ended the morning session at 65,495.23 yen, up 225.90 yen on a closing-price basis, with estimated trading volume exceeding approximately 1 billion shares. Although the market was affected by declines in U.S. equities on 8 September, the Nikkei came under selling pressure at the open, while buying emerged in oil and resource-related stocks against the backdrop of rising crude oil prices, gradually bringing the index back into positive territory.
After opening, the market showed resistance to further declines and traded in the 65,400-yen range toward the morning close. While monitoring developments in the U.S. market, rising crude oil prices and movements in long-term interest rates affected investor sentiment, with resource-related stocks providing relative support.
Energy and resource-related stocks rose relatively strongly, while buying also spread to the nonferrous metals sector. At the same time, some large-cap and growth stocks remained a drag, leaving a sense that gains across the market as a whole were limited.
The afternoon session is expected to see range-bound trading around the morning closing level, with developments in tensions between the United States and Iran and movements in crude oil prices continuing to be the focus of market sentiment. While resource- and energy-related stocks are supporting the index, the impact of higher crude oil prices resulting from a deterioration in the Middle East situation is considered a risk requiring attention.