Stocks in Japan Hit 4-week Low

The Nikkei 225 Index jumped 1.6% to above 66,000 on Thursday as the market reopened following an extended holiday, with technology and artificial intelligence stocks leading gains as they caught up with global peers. Global tech and AI shares outperformed in recent sessions after Meta’s Muse personal AI agent rekindled investor interest in the sector and boosted demand for AI infrastructure stocks. Notable gainers in Japan included Kioxia Holdings (3.2%), Ibiden Co (5.9%), Advantest (1%), SoftBank Group (5.4%) and Tokyo Electron (0.8%). Meanwhile, investors remained cautious as Wall Street came under pressure on Wednesday after strong US economic data and a rebound in oil prices fueled inflation concerns and reinforced expectations for further Federal Reserve rate hikes, pushing the dollar and Treasury yields higher. Investors also continued to monitor developments in US-China talks that could lead to new trade agreements.

The Nikkei 225 Index gained 966 points or 1.51 percent on Friday to close at 65102 points. Gains were led by Lasertec Corp (8.98%), Advantest (7.04%) and Mitsui Kinzoku (6.22%).

The Nikkei 225 Index climbed 0.9% to above 64,600 on Friday, rising for the third straight session as the Bank of Japan raised its policy rate by 25 basis points to 1.25% in a widely expected move. Investors will now look for guidance on the possibility of further tightening as policymakers grapple with elevated inflation and wage growth, along with pressure from US Treasury Secretary Scott Bessent. Meanwhile, Japan’s annual inflation rate held steady at 1.9% in August, while core inflation stayed below the BOJ’s 2% target for a seventh straight month at 1.7%. Technology and AI-related stocks led the gains following similar advances on Wall Street overnight, as concerns over AI development safety risks eased. Notable performers included Kioxia (3.2%), SoftBank Group (4.1%), Advantest (4%), Lasertec (5.5%), and Ibiden Co (3.3%).