The Nikkei 225 Index Closes 3.34% Higher

The Nikkei 225 climbed 2.87% to close at 60,459 on Tuesday, extending its advance for a second consecutive session and tracking strong overnight gains on Wall Street as semiconductor stocks rebounded from last week’s sharp selloff. Sentiment toward the artificial intelligence sector improved after facing pressure last week amid concerns over tighter regulatory oversight and slower data center expansion following Democrats’ sweeping victory in the US midterm elections. Investors are now focusing on neocloud company CoreWeave’s upcoming earnings release for further insights into the strength of the AI trade. Japanese semiconductor-related stocks led the market higher, including Kioxia Holdings (9.2%), Advantest (4.6%), Tokyo Electron (6.1%), and SoftBank Group (13.9%). The rally came despite growing scrutiny surrounding chipmaking giant Nvidia following controversy involving its CEO, Jensen Huang.

The Nikkei 225 Index gained 1965 points or 3.34 percent on Tuesday to close at 60741 points. Gains were led by Softbank (14.50%), Furukawa Electric (9.68%) and Resonac Holdings (9.40%).

The Nikkei 225 jumped more than 2% to move above the 60,000 mark on Tuesday, extending its gains for a second consecutive session and following a strong rally on Wall Street as semiconductor stocks recovered from last week’s sharp decline. Sentiment toward the artificial intelligence sector improved after coming under pressure last week due to concerns over tighter regulatory scrutiny and slower data center expansion following Democrats’ sweeping victory in the US midterm elections. Investors are now turning their attention to neocloud company CoreWeave’s upcoming earnings report for further indications of momentum in the AI sector. Japanese semiconductor-related stocks led the advance, with Kioxia Holdings rising 6.9%, Advantest gaining 5.3%, Tokyo Electron climbing 5.8%, and SoftBank Group surging 11.9%. Major banking stocks also contributed to the rally, as Mitsubishi UFJ advanced 3.4% and Mizuho Financial gained 4.4%.