The Japanese stock market rose on Thursday as it attempted to stabilize following a three-day decline prompted by the Middle East conflict, though the increase was not sufficient to fully recover the previous cumulative losses. The Nikkei Index (NI225) closed up 1.9% at 55,278.06 points, having reached a maximum intraday gain of 4.4%. The Tokyo Stock Exchange Index (TOPIX) also rose by 1.9%, closing at 3,702.67 points, with an intraday peak of nearly 4%.
Market Sentiment Amid Middle East Conflict
Affected by the broad sell-off in Asian stock markets, the Nikkei Index fell to a one-month low on Wednesday, with a cumulative three-day decline of 7.8%. Amid the Middle East conflict, investors have been selling off risk assets and taking profits after the stock market reached record highs. Shuutaro Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory, stated: "The market looked overheated when stock prices were soaring recently, but this sense of short-term overheating is gradually dissipating after a rapid correction."
Strong Performance in Semiconductor and Energy Stocks
On Thursday, Asian stock markets rose amid a decline in US bonds, indicating a cautious return of risk appetite after being heavily impacted by the escalation in the Middle East conflict. Semiconductor-related giants propelled the Nikkei Index upward, with Advantest (6857), a chip testing equipment manufacturer, rising 4.2%, and Tokyo Electron (8035), a chip manufacturing equipment maker, gaining 2.5%. Technology investment group SoftBank (9984) climbed 4.3%.
The energy exploration stock index (.IMING.T) surged 6.8%, with oil and gas explorer Inpex (1605) setting a new closing high.
Slight Decline in Airline Stocks
On the other hand, airline stocks slightly declined. Japan's largest airline, All Nippon Airways (9202), fell 0.7%, and competitor Japan Airlines (9201) dropped 1.1%. Concerns over Middle East tensions and rising oil prices continue to affect airline stock performance. By Thursday's close, 176 of the Nikkei Index components rose, while 48 declined.
