Nikkei Rebounds as US Gains and Dollar Selling Boost Tokyo Market

The Nikkei Stock Average opened higher on August 20 after three consecutive sessions of declines. The index rose 406.37 yen to 65,732.79, a rebound that many analysts attributed to gains in US stock indexes and a decline in long-term US Treasury yields.

The Dow Jones Industrial Average closed 119.65 dollars higher at 53,463.05 on August 19, while the Nasdaq Composite finished 41.38 points higher at 26,331.09. These gains, combined with the US Treasury Department's announcement of increased buybacks to support liquidity in the long-term government bond market, contributed to a positive investor sentiment.

The rebound was also fueled by dip-buying and bargain-hunting, as investors took advantage of the Nikkei's recent decline of nearly 3,900 yen. Foreign investors were net buyers of Japanese stocks for the first time in three weeks, purchasing ¥621.2 billion worth of shares.