The Nikkei 225 recovered to the 64,000 level in the afternoon session on the strength of buybacks. The index is expected to move from the morning session's trend into a rebound phase, with trading anticipated to remain range-bound near the highs.
The Nikkei 225 is expected to trade in a range near the highs in the afternoon session, and the prevailing view is that it recovered to the 64,000 level as buybacks gained the upper hand. In the morning session, the index moved from negative to positive territory after opening lower, highlighting the strength of support on dips. Amid repeated volatility, the latest move in the Nikkei 225 has focused attention on the buyback phase.
In terms of market levels, the Nikkei 225 remains well below its 25-day and 75-day moving averages, which are trading around the 66,000 level. The view is that despite the short-term rebound, the index has yet to reach its longer-term average levels.