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Nikkei
Source: Newsmaker.id
The Nikkei 225 index rose 1.39% to reach 65,324 by the close of trading on Friday (October 16), recovering some of the sharp losses seen in the previous session. The rebound followed an easing of selling pressure on technology stocks, as investors refocused on the outlook for the artificial intelligence (AI) sector.
Market sentiment improved after Taiwan Semiconductor Manufacturing Company (TSMC) reported record-breaking third-quarter earnings. Optimism was further bolstered by Nvidia CEO Jensen Huang, who defended the financial standing of AI computing provider CoreWeave, while AI firm Anthropic reported a nearly twelvefold increase in third-quarter revenue, reaching US$16.8 billion.
Regarding monetary policy, the market also reacted to remarks made by Federal Reserve official Kevin Warsh in Bangkok. Warsh offered no signals regarding an imminent interest rate hike, despite recent US inflation data indicating higher-than-expected price pressures.
Several Japanese technology stocks saw gains, with Kioxia rising 3.8%, Taiyo Yuden 2.1%, and Lasertec 5.1%. The financial and consumer sectors also strengthened, with Mitsubishi UFJ climbing 1.8% and Toyota Motor advancing 2.2%.
Despite Friday’s rebound, the Nikkei 225’s weekly performance remained under pressure. The index fell 5.37% for the week—its steepest weekly decline since July—suggesting that the late-week recovery has not yet fully alleviated investor concerns regarding the valuations of tech stocks and the outlook for AI investments.
Newsmaker Analysis: The Nikkei’s rebound indicates that investors are beginning to re-enter the technology sector following the subsiding of a sharp sell-off. However, the significant weekly decline suggests that overall market sentiment has yet to fully recover. The growth prospects for AI, the performance of technology companies, and the direction of US interest rate policy will be key factors in determining whether the Nikkei’s recovery can be sustained or if it will face renewed pressure. (asd)
Source: Newsmaker.id