Japan’s Nikkei index concluded the trading session on Tuesday with an increase of nearly 3%, marking a continuation of its rebound from the recent sell-off primarily driven by technology stocks last Friday. Notably, shares associated with artificial intelligence experienced substantial gains. According to source, the Nikkei experienced an increase of 2.87%, reaching 60,459.58 points, thereby recovering the significant losses incurred on Friday over the past two sessions. The broader Topix index experienced an increase of 1.98%, reaching 3,893.71 points.
“The sharp gains recorded by the Nikkei over the last two sessions come as a surprise,” said Kazuaki Shimada. “However, these gains remained limited, as investors are hesitant to bet on the Nikkei breaking past the 61,000-point mark,” he added. On Friday, the Nikkei experienced a decline of nearly 6% as AI-related stocks retreated, driven by concerns that the U.S. Congress may impede investments in the AI sector following the Democratic Party’s decisive victory in the midterm elections. On Tuesday, shares of SoftBank Group, a prominent investor in the technology sector, experienced a notable increase of 13.88%.
Concurrently, shares of chipmakers Advantest and Tokyo Electron saw rises of 4.63% and 6.05%, respectively. These gains transpired notwithstanding a 4.2% overnight decline in Nvidia shares, amid persistent controversy surrounding the company’s CEO. “So far, the market views the impact of this situation as limited to Nvidia, rather than the sector as a whole,” stated Shimada. Shares of memory chip manufacturer Kioxia experienced an increase of 9.23%.
Shares of JX Advanced Metals increased by 4.64% following the company’s revision of its net profit forecast for the fiscal year ending next March, which was raised by 14%. Toyota Motor shares experienced a decline of 2.21%, contributing significantly to the downward movement of the TOPIX index. Shares of Fujikura increased by 0.29%, having relinquished a significant portion of their earlier gains following the company’s revision of its annual operating profit forecast downward.
