Japanese stocks saw the Nikkei Average approach ¥70,000 during the morning session. The weakness of US employment data and the drag from rising interest rates were factors, while buying in semiconductor stocks supported the market.
The Nikkei Stock Average rose sharply from the opening in the morning session, beginning trading at ¥69,113.74, up ¥804.28 from the previous day. The soft US employment data prompted a retreat in expectations for additional rate hikes, bringing buying into semiconductor-related stocks and pushing the Nikkei Average higher.
Among individual stocks, Advantest and Tokyo Electron were bought, supporting the overall market rise.
Meanwhile, concerns that rising interest rates, driven by higher oil prices resulting from worsening conditions in the Middle East and fiscal concerns in Japan and the US, would weigh on stock prices. Even as the Nikkei approached ¥70,000, reports noted that gains remained capped.