The Nikkei Stock Average surged 2,140.93 yen from the previous session to close the morning at 61,945.34 yen on May 21, staging a sharp rebound. Estimated volume on the Prime Market reached 1.204 billion shares, with turnover at 5,398.2 billion yen. Advancers heavily outnumbered decliners 1,161 to 376, with 30 issues remaining unchanged.

Risk-on sentiment swept the Tokyo market during the morning session. Renewed hopes for a resolution to the U.S.-Iran conflict dragged down crude oil prices, easing inflation concerns and pausing interest rate hikes, which fueled buying sentiment. Following a multi-day losing streak through the previous day, short-covering accelerated across large-cap stocks. Capital inflows into AI and semiconductor-related shares were particularly robust. SoftBank Group Corp. <9984> led the broader market higher on speculative buying tied to an impending IPO for its investee OpenAI. Blockbuster earnings from Nvidia Corp. , released early morning Japan time, provided additional tailwinds, driving gains in over 70% of Prime Market listings.

Among individual stocks, SoftBank Group hit its daily limit-up price. Semiconductor and tech-related names surged, with Kioxia Holdings <285A>, Tokyo Electron <8035>, Advantest <6857>, Fujikura <5803>, and Ibiden <4062> posting sharp gains, while Murata Manufacturing <6981> and TDK <6762> advanced. Heavyweights Toyota Motor <7203> and Mitsubishi UFJ Financial Group <8306> also joined the rally. Conversely, Sompo Holdings <8630> and Rakuten Bank <5838> plummeted following recent corporate announcements. Nintendo <7974>, Sony Group <6758>, and Mitsubishi Heavy Industries <7011> traded lower.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.