The Nikkei average staged a sharp rebound, recovering to the 70,000 range. Expectations for a hold at the FOMC, amid developments in US employment statistics, provided the backdrop, and the market remained sharply higher through the morning session.
The Nikkei average staged a sharp rebound, reaching ¥70,037.61 near the end of the morning session, while trading volume was approximately 978.04 million shares. Following gains in the Dow and Nasdaq in the US market at the end of last week, the index extended its gains after the open.
The market was supported by increased risk appetite following developments in the US market and growing expectations that the next FOMC meeting would leave policy unchanged, based on views surrounding employment-related indicators released on the 5th. The decision to release emergency reserves of crude oil and diesel fuel also prompted buying interest in resource-related stocks.
Among individual stocks, Advantest, Tokyo Electron, SoftBank Group, Fast Retailing and TDK rose. Recruit Holdings, Daikin, KDDI, Fujikura, Bandai Namco Holdings, Sony Group and other stocks declined.
Whether the 70,000 range can be maintained in the afternoon session will be the focus. The Nikkei average is expected to remain near its morning high, with attention centered on market movements following its recovery to 70,000. The market's direction is expected to depend on domestic economic indicators and monetary policy developments.