The Nikkei 225 staged a modest rebound. After being sold down by more than 900 points at one point during the morning session, it recovered as investors bought on dips against a backdrop of falling long-term US Treasury yields. Trends in semiconductor stocks and the TOPIX also fed through to the market as part of monthly market developments.
The Nikkei 225 staged a modest rebound in Tokyo trading on the 25th. It ended the morning session up ¥70.59 at ¥65,598.68, while the TOPIX rose 13.44 points to 4,086.73. Shortly after the opening, the Nikkei 225 was at one point sold down by more than 900 points, but it recovered as the decline in long-term US Treasury yields was seen as a supporting factor, prompting buying on dips.
Across the market, some semiconductor-related stocks came under selling pressure following the previous day's decline in technology stocks on US markets, weighing on the Nikkei 225. Meanwhile, on the Prime Market, gainers outnumbered decliners for much of the session, and the market continued to show signs of a two-tiered performance. Buying back into the market gathered pace in the afternoon session, allowing the Nikkei 225 to significantly extend its gains from the previous day and end trading higher.
In morning trading, selling prevailed from the opening, and the index remained at times in negative territory as of 10:10 a.m. In the afternoon session, semiconductor-related stocks saw increased buying back, widening the gain from the morning close. Ahead of Nvidia's earnings announcement, aggressive buying was restrained, but the direction of US interest rates had created an environment conducive to buying on dips across the market.