The Tokyo stock market opened with a surge in buying activity, with the Nikkei Stock Average rising 168 yen to 68,882 yen, continuing its upward trend. This positive sentiment is attributed to the receding expectations of early rate hikes by the Federal Reserve (FRB), which is seen as a boon for the stock market. However, the Nikkei Average faces resistance above due to a pullback from last week's surge, and resilient price movements are expected as dip-buying demand supports the downside.
Among the top news, SoftBank Group remains firm, with reports indicating that NVIDIA is in talks to invest up to $3 billion in SB Energy. This investment is part of ongoing negotiations with OpenAI and SB Energy, with NVIDIA aiming to provide approximately $100 billion in credit enhancement for its data center clusters. Honda continues its upward trend, leveraging artificial intelligence (AI) in the development of automotive safety technologies, aiming to counter Chinese rivals. AI instantly proposes multiple corrections to vehicle designs and specifications for crash safety measures, aiming to shorten the development period by over 40%.
KeePer Giken surged, with an operating profit forecast of JPY 9.01 billion for the full fiscal year ending March 2028, a 30.3% increase year-on-year. The company plans to expand its store network and actively pursue new acquisitions in line with growing demand for KeePer coatings. Raksus, on the other hand, faces selling pressure, with Q1 net income up 4.1x but missing consensus. Buy/Sell Technologies saw a sharp rebound for the first time in three days, with an upward revision to its consolidated net income forecast for the fiscal year ending December 2026.
In terms of special quotes, Nexon, Renesas Electronics, and Mitsui Kinzoku show buy-side special quotes, attracting top buy orders. However, Ebara, Datasection, Dentsu Group, NEC, and Trend Micro are attracting top sell orders, suggesting potential downward pressure on their stock prices. The market's overall sentiment is positive, with buying activity dominating, but investors should remain cautious due to the presence of resistance and potential selling pressure.
