Japanese equities advanced on Monday, fueled by renewed risk appetite. The Nikkei 225 briefly reclaimed the 54,000 level by the morning close in a futures-driven rally, but the market struggled to maintain its momentum in the afternoon session.

The Nikkei Stock Average closed at 53,413.68, gaining 290.19 points from the previous session to extend its recent rally. On the Prime Market, trading volume was approximately 1.65 billion shares, with turnover totaling \5.27 trillion. Advancing issues outpaced decliners 949 to 561, with 66 remaining unchanged.

Despite a lack of fresh catalysts and muted foreign participation following the weekend, the Tokyo market saw aggressive short-covering early in the day. While U.S. President Trump’s hardline stance raised concerns over potential large-scale military action in Iran, emerging speculation of a ceasefire prompted investors to buy back shorts. This pushed the Nikkei up over 900 points at its intraday peak to close the morning session in the 54,000 range. However, afternoon trading saw these gains capped by lingering fears over how surging crude oil prices might impact corporate earnings. While more than 80% of Prime Market constituents were trading higher by the mid-day break, that figure dropped to roughly 60% by the final bell. Additionally, trading value remained subdued in the \5.2 trillion range?mirroring the previous session?as overseas investor activity was limited due to market closures abroad.

In single-stock action, Kioxia Holdings <285A>?which has firmly established itself as a top stock by trading value?remained resilient, while Furukawa Electric Co., Ltd. <5801> surged on heavy volume. Semiconductor-related names were well-supported, with Lasertec Corporation <6920> posting notable gains, alongside solid performances from Advantest Corporation <6857> and Disco Corporation <6146>. Ibiden Co., Ltd. <4062> and Resonac Holdings Corporation <4004> also drew strong investor interest. Elsewhere, Sakura Internet Inc. <3778> hit its daily upper limit for a second consecutive session, joining GMO Internet Group, Inc. <4784> and Lifedrink Company, Inc. <2585> in posting sharp rallies. Nippon Thompson Co., Ltd. <6480> and Rasa Industries, Ltd. <4022> also saw substantial gains.

Conversely, Mitsubishi Heavy Industries, Ltd. <7011> and IHI Corporation <7013> faced selling pressure, while Inpex Corporation <1605> retreated. Mitsubishi Corporation <8058> declined, and Hitachi, Ltd. <6501> also traded softly. Among the sharper declines, Asteria Corporation <3853> plunged, Archion <543A> was hit by heavy profit-taking, and KLab Inc. <3656> sold off significantly. Toyo Engineering Corporation <6330> and Sanrio Company, Ltd. <8136> closed lower, while eREX Co., Ltd. <9517> struggled to find a bottom.

Source: MINKABU PRESS