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Nikkei
Source: Newsmaker.id
Japan’s Nikkei 225 index staged a recovery during Friday’s trading session (October 16, 2026), climbing more than 1% to surpass the 65,000-point mark. This rebound followed a period of pressure in the previous session, driven largely by a sell-off in technology stocks amid concerns regarding the outlook for artificial intelligence (AI) investments. As the selling pressure in the tech sector eased, investors returned to the market—though overall sentiment remains tempered by uncertainty regarding the long-term sustainability of growth in the global AI industry.
The recovery in tech stocks was bolstered by comments from Nvidia CEO Jensen Huang, who defended the financial standing of CoreWeave Inc., a provider of AI-based computing. His remarks helped alleviate investor anxieties about the financial health of companies involved in building AI infrastructure—a topic that has come under closer scrutiny due to concerns over capital requirements and debt burdens within the sector. Several Japanese tech stocks saw gains, with Kioxia and Advantest both rising 0.7%, while Lasertec climbed 3%. These gains signal a revival in investor interest in the semiconductor sector following recent downward pressure.
The rally in the Japanese market also extended to the financial and automotive sectors. Shares of Mitsubishi UFJ Financial Group rose 2%, while Toyota Motor gained 2.1%, providing further support for the index. Meanwhile, market participants are focused on an upcoming appearance by Federal Reserve Chair Kevin Warsh at an International Monetary Fund (IMF) meeting in Bangkok, where he is set to speak alongside IMF Managing Director Kristalina Georgieva. Investors are looking for clues regarding the outlook for U.S. interest rate policy, especially after higher-than-expected U.S. inflation data fueled uncertainty about the future direction of monetary policy and the global cost of capital. Although it managed to rebound during Friday’s trading session, the Nikkei 225 remains on track for a weekly decline of more than 5%, reflecting the significant pressure experienced throughout the week. This situation indicates that the short-term recovery has not yet fully alleviated investor concerns regarding the valuations of technology stocks and the outlook for AI-related investments. The index’s future movements are expected to be heavily influenced by developments in the global semiconductor sector, the direction of Federal Reserve policy, and shifts in risk sentiment across international markets. Should the selling pressure on technology stocks continue to ease, the Nikkei may see an extended recovery, though volatility is likely to remain high.