3 hrs ago
Japan’s Nikkei Gains on AI Rally Despite Yield Concerns
Japan’s main stock market rose after being closed for a three-day holiday.
It caught up with stock gains in other countries, especially companies connected to artificial intelligence.
Chip-related companies did particularly well.
Investors were encouraged by new AI developments from Meta and Alibaba.
However, higher bond yields made some investors more careful.
Rising oil prices also increased worries about inflation.
The yen’s changing value was another concern.
Analysts said Japanese banks and the wider market could face pressure if borrowing costs stay high.
The Nikkei 225 rose 1.8% to 66,167.25 after Japan’s three-day holiday.
Chip-related companies including Ibiden and Socionext led many of the gains.
The rally followed global enthusiasm over new AI developments from Meta and Alibaba.
Higher bond yields, rising oil prices and yen volatility limited broader risk appetite.
Analysts warned that monetary-policy uncertainty and borrowing costs could pressure the broader Topix index.
- Who
- Japanese stock investors, chip-related companies, and market analysts including Hu You and Ikuo Mitsui.
- What
- The Nikkei 225 rose 1.8%, while the broader Topix gained 0.2%.
- Where
- Japan’s stock market, with trading reported from Tokyo.
- When
- Thursday morning in Tokyo, after Japan’s three-day Silver Week holiday.
- Why
- The market caught up with a global AI-led rally, although higher yields, oil prices, inflation concerns and yen volatility limited gains.
AI Rally Optimism
Yield and Economic Concerns
Market direction
AI Rally Optimism
The Nikkei’s semiconductor exposure and Japan’s broad range of chip-material makers could allow the market to benefit from renewed enthusiasm for AI.
Yield and Economic Concerns
Higher global bond yields, oil prices and borrowing costs could reduce risk appetite and pressure the broader Topix.
Individual companies and sectors
AI Rally Optimism
Ibiden may benefit from increasingly complex AI semiconductors and rising demand for advanced packaging.
Yield and Economic Concerns
Narrowing long- and short-term yield spreads could weigh on Japanese bank shares, while software stocks such as BayCurrent and Recruit Holdings underperformed.
Key facts
- Nikkei 225
- Up 1.8% to 66,167.25 as of 10:09 a.m. in Tokyo.
- Topix
- Up 0.2% to 4,097.42.
- Leading sectors
- Electronics and machinery led the Topix; chip-related companies were among the Nikkei’s strongest performers.
- Japanese bond yield
- The 10-year government bond yield rose eight basis points to 3.055%.
- Yen
- Trading at around 158 yen per U.S. dollar.
- AI catalysts
- Meta reported early signs of success for a new AI agent, while Alibaba unveiled what it called China’s most powerful AI chip.
- Bank of Japan
- Raised its policy rate to 1.25% in a split-vote decision on Friday.
Quotes
Ikuo Mitsui
Fund manager at Aizawa Securities
“Yields are reaching fairly attractive levels, and bond investors may now start looking for opportunities to put money to work.”
livemint.com
“We expect the semiconductor-heavy Nikkei 225 to take cues from the strength in global technology stocks.”
livemint.com
Sources
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