The Nikkei 225 Index Closes 3.78% Higher

The Nikkei 225 Index jumped 2% to above 65,000 on Wednesday, rebounding from one-month lows, with AI-related shares leading the gains as strong results from server manufacturer Super Micro Computer boosted the spending outlook for AI spending. Robust earnings from Elon Musk’s SpaceX, driven by growth in its AI and satellite internet businesses, also supported sentiment towards the sector. Among the top tech performers in Japan were Kioxia Holdings (5.1%), Advantest (4.8%), SoftBank Group (3.5%), Lasertec (3.2%), and Taiyo Yuden (2.7%). Financial stocks also rebounded, with Mitsubishi UFJ rising 1.6% and Sumitomo Mitsui gaining 1.4%. Meanwhile, data showed that Japanese exports increased 16.7% in September, falling short of the 20.1% forecast and marking the slowest growth since April. Still, exports extended their growth streak to 13 consecutive months, supported by strong demand for semiconductors and AI-related products.

Japan’s Nikkei 225 Index dropped 1.3% to close at 64,075 on Tuesday, marking a one-month low as concerns over AI spending and higher borrowing costs continued to pressure technology shares. Japanese equities also diverged from Wall Street’s overnight rebound, with local technology firms particularly exposed to renewed selling in AI-related stocks. Major decliners included Kioxia Holdings (-3.4%), SoftBank Group (-6%), Taiyo Yuden (-5.1%), Fujikura (-6.5%) and Tokyo Electron (-2.6%). Financial stocks also suffered significant losses, with Mitsubishi UFJ falling 3.7%, Mizuho Financial declining 5% and Sumitomo Mitsui dropping 3.9%. In corporate developments, credit-default swap spreads linked to SoftBank Group rose to their highest levels in nearly four years, reflecting growing concerns over the company’s AI-related financing needs and the possibility of a major acquisition.

The Nikkei 225 Index fell 864 points or 1.33 percent on Tuesday to close at 64053 points. Leading the losses are Resonac Holdings (-11.12%), Fujikura (-7.05%) and Sumco (-6.99%).