The Nikkei Average was up ¥658 after the open and remained firm throughout the day. Gains in the SOX Index and NVIDIA's after-hours rise following its earnings announcement supported market sentiment, while exchange-rate movements favoring a weaker yen and stronger dollar also bolstered expectations for export companies' earnings.
The Nikkei Average was up ¥658 after the open, with the figure recorded as of 9:05. Although the three major US stock indexes moved little in the previous day's trading, continued gains in the SOX Index supported semiconductor-related stocks in the Tokyo market.
NVIDIA shares rose in after-hours trading in the US after the company announced its results for the May–July period following the close of the US market. A sense of reassurance spread through the Japanese market, and buying in the Nikkei Average prevailed.
In the foreign exchange market, the yen was weakening against the dollar, heightening expectations that this would support export companies' earnings. At the same time, factors weighing on stock prices due to developments in overseas markets were also present.
At the open, buying in the Nikkei Average led the market, and some viewed the 75-day moving average as resistance. Overall, however, the index remained firm.