Nikkei rebounds around 500 points after previous day's sharp drop, but gains remain capped

The Nikkei Stock Average was trading around 65,830 shortly after 12:48 p.m. on the 20th, up approximately 500 points after the previous day's sharp decline. The rebound restored the psychologically important 65,000 level, but gains narrowed after the afternoon open as the dollar-yen pair moved around 158.40 yen and investors remained cautious about exporters and semiconductor demand. Fast Retailing, SoftBank Group and Kioxia Holdings were among the leading positive contributors, while Tokyo Electron, Advantest and Ibiden weighed on the index. Prime Market volume stood at 1,198.18 million shares and turnover at ¥4.82 trillion, both below the previous day's comparable levels. Market participants described the move as a technical rebound, with U.S. semiconductor earnings and Bank of Japan policy remarks among the next key focuses.

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