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Nikkei
Source: Newsmaker.id
Japan’s Nikkei 225 index rose 2.33% to reach 58,775 in Monday’s trading session (November 9), recovering some of the sharp losses sustained the previous week. Improved sentiment spurred buying activity, particularly in the financial and consumer sectors.
The banking sector served as a primary driver of the rebound. Mizuho Financial climbed 5.1%, Mitsubishi UFJ rose 4.4%, and Sumitomo Mitsui gained 3.9%. Gains were also seen in retail and automotive stocks, with Fast Retailing up 3.7%, Nintendo rising 5.2%, and Toyota Motor advancing 4.6%.
This rebound follows a decline of more than 9% in the Nikkei over the previous week—the index’s steepest weekly drop since the massive sell-off in March 2020. The earlier downward pressure was triggered by the Democratic Party’s significant gains in the U.S. midterm elections, which fueled concerns regarding potential regulations on the AI industry.
Investors had been anxious about the prospect of tighter regulations on the AI sector and a potential slowdown in data center development. These concerns are particularly relevant to the Japanese market, as several of its technology companies have significant exposure to the global AI infrastructure supply chain.
Newsmaker Analysis: Today’s rebound suggests that investors have begun to "buy the dip" following last week’s sharp correction. However, this recovery has not entirely eliminated risks within the technology sector. Should pressure on the global AI industry persist, Japanese tech stocks could remain a source of volatility, while the banking, consumer, and automotive sectors may continue to provide support for the index. (srh)
Source: Newsmaker.id