The Nikkei Stock Average turned higher after the open, gaining ¥215 as of 9:06 a.m. With investors awaiting developments in the previous day's US market and next week's events, including the FOMC and Bank of Japan meeting, a wait-and-see mood spread, while movements in semiconductor stocks supported the market.
Selling led the Tokyo market at the open, but the Nikkei average subsequently turned higher, gaining ¥215 as of 9:06 a.m. Although the decline in all three major US stock indexes the previous day weighed on sentiment, some market participants attributed the improvement in confidence to factors including a pause in the rise in domestic long-term interest rates.
Against this backdrop, some market participants said aggressive buying was being held back ahead of next week's US PPI and CPI releases and the Bank of Japan and FOMC announcements. Meanwhile, the SOX Index's fourth consecutive daily gain supported domestic semiconductor-related stocks and helped underpin the market.
Uncertainty over the US outlook and the impact of higher crude oil prices continue, and investors are expected to remain cautious. However, the rebound after the open could influence the market's next phase depending on the balance of factors.
The stock market remains focused on assessing the results of US economic data releases and the Bank of Japan's policy meeting from next week onward. Investors are waiting for the key events to be announced and are proceeding cautiously with stock selection.