The Nikkei Average opened sharply higher, with buying leading the market. A rebound in U.S. stocks and gains in AI- and semiconductor-related stocks supported the market, and gains widened further after the open.
The Nikkei Average was up ¥757 as of 9:05 a.m., with buying leading the Tokyo market. Gains in the previous day's U.S. stock market supported the Japanese market, particularly lifting stocks with high exposure to technology.
In the U.S. market, the Nasdaq Composite rose 0.82% and the Philadelphia Semiconductor Index (SOX) rose 2.82%, providing support for AI- and semiconductor-related stocks. At the same time, selling pressure was seen as having run its course following the previous three-day decline, making the market conducive to buying on dips.
Going forward, first-half earnings announcements by domestic companies with March year-ends are expected to get into full swing, and there was a view that interest in companies reporting strong results would increase.
At the open, buying cues outweighed persistent uncertainty in overseas markets, including crude oil prices remaining at high levels and movements in long-term interest rates. The Nikkei Average has therefore continued to trade with gains widening.