Nikkei Bounces Back with Dip-Buying Amid Semiconductor Weakness

The Nikkei Stock Average traded in a narrow range on the Tokyo Stock Exchange on the 24th, but ultimately closed 40 yen higher. The index had started the day down 37 yen from its previous weekend close and at one point dipped below the psychologically important 66,000 level. However, dip-buying emerged as investors took advantage of lower prices after a significant correction last week.

The Philadelphia Semiconductor Index fell in U.S. trading over the weekend, putting pressure on semiconductor-related stocks in the Tokyo market. The index had initially fallen more than 2,000 yen the previous week due to concerns over the Middle East situation and rising long-term interest rates in Japan and the U.S.

Rising crude oil futures prices and U.S. long-term interest rates kept investor sentiment cautious ahead of Nvidia's May-July quarter earnings release scheduled for the 26th. Some investors held off on aggressive buying as they sought to assess the results first.