Nikkei rises 371.12 yen as Tokyo stocks extend gains

The Nikkei Stock Average closed the morning session on the Tokyo Stock Exchange on the 26th at 66,227.55, up 371.12 yen, or 0.56%, from the previous day. The market carried over momentum from the rise in U.S. stocks on the 25th as excessive caution over the Middle East situation eased. Buying spread across a broad range of Tokyo-listed shares, led by blue-chip stocks, while the Tokyo Stock Price Index (TOPIX) rose 24.77 points to 4,118.44, outperforming the Nikkei. Banks, securities firms and pharmaceutical companies advanced, and TOPIX's strength helped trigger short-covering in Nikkei futures and related instruments after the Nikkei initially fell more than 400 yen. The market opened at 65,604.49, down 251.94 yen, with semiconductor-related and other high-tech stocks weighing on the index. As concerns over escalating Middle East fighting receded and crude oil prices and U.S. interest rates fell, some AI-related stocks rebounded. A strategist at a major securities firm said there was no clear negative catalyst for AI-related names and that profit-taking ahead of Nvidia's earnings was likely responsible for their weakness. About 70% of Prime Market stocks rose, although trading-value growth was slower than the previous day and some participants said a wait-and-see stance remained strong.

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