The Nikkei Average is expected to remain range-bound around ¥67,000 during the afternoon session. Higher crude oil prices and rising US long-term yields are weighing on investor sentiment, while buying of semiconductor stocks and interest in strong-performing companies are seen supporting the market.
The Nikkei Average is expected to trade around ¥67,000 during the afternoon session, having stood at ¥67,040.18, up 69.96 points. Crude oil prices are rising as negotiations with Iran over the Strait of Hormuz remain difficult, while higher US long-term yields are also drawing attention.
With momentum for further gains limited, profit-taking and selling by investors waiting for a rebound are expected to emerge more readily in the near term. However, buying interest in semiconductor stocks remains firm, and stock selection based on earnings is expected to provide support for the market as a whole.
As domestic earnings announcements enter their final phase, some expect funds to flow into mining and banking stocks, which benefit from higher crude oil prices, with broader stock selection helping keep the index firm.