Key Takeaways
- Japan’s Nikkei share average increased by 0.2%.
- The broader Topix index climbed 0.4%.
- Crude oil prices fell, positively impacting the market.
Japan’s Nikkei share average rose by 0.2% to close the morning session at 70,081.53, buoyed by gains on Wall Street and a decline in crude oil prices.
The broader Topix index also saw an increase of 0.4% to 4,163.61, reflecting a positive market sentiment.
Among the 225 components of the Nikkei, 140 rose while 82 fell, with three remaining unchanged.
Overnight, all three main US indexes gained, with the tech-focused Nasdaq Composite reaching a record high, driven by strong performances from tech heavyweights like Nvidia.
Japanese tech shares showed mixed results, with Advantest gaining 1.7% and SoftBank Group losing 2.7%.
Nomura Securities strategist Wataru Akiyama noted that perceptions of stock valuations are being reassessed in light of current share prices.
The fall in crude oil prices is seen as a significant factor influencing the market, given Japan’s heavy reliance on imported energy, particularly from the Middle East.
Investors will closely watch the results of a 10-year Japanese government bond auction later in the day, with yields at multi-decade highs amid concerns over Prime Minister Sanae Takaichi’s expansionary fiscal policies and a selloff in French sovereign debt.
Bank of Japan Governor Kazuo Ueda is scheduled to give a speech after the market close, which could provide insights into the pace of further interest rate hikes.
For individual stocks, perceptions of whether they are overvalued or undervalued are being assessed in relation to their current share price levels.
Nomura Securities strategist Wataru Akiyama, Nomura Securities strategist
