The Tokyo market started with the Nikkei Average up 336 points at the open, and remained firm on the back of higher U.S. stocks. With the Bank of Japan's monetary policy meeting approaching, buying momentum and caution coexisted in the market.
The Nikkei Average opened 336 points higher, with buying leading as of 9:05 a.m. Gains in the U.S. stock market the previous day had a positive impact on the Tokyo market, and the market remained firm after the open.
One factor supporting the market was the sharp rise in the SOX Index, led by semiconductor-related stocks. Its gain was also relatively large compared with the rise in the Dow Jones Industrial Average.
Earnings announcements for the July–September quarter are increasing both in Japan and overseas, and expectations are growing that demand for stocks with strong earnings and performance will underpin share prices.
At the same time, firmer movements in crude oil futures prices and U.S. long-term interest rates made investor sentiment more cautious. Investors were also seen holding back on buying ahead of the Bank of Japan's monetary policy meeting tomorrow. Buying prevailed at the open, but some market participants said they wanted to assess how trading develops.