Nikkei Rises, Driven Primarily by AI-Related Stocks

The Nikkei 225 index closed 0.85% higher at 64,621 on Wednesday (October 21), rebounding from a one-month low. The gains were driven largely by stocks linked to artificial intelligence (AI), following positive performance from U.S. technology firms that bolstered optimism regarding the sustainability of AI-related investments.

Several Japanese technology stocks saw gains, including Kioxia Holdings, Advantest, SoftBank Group, Lasertec, and Taiyo Yuden. Positive sentiment also spread to the financial sector, with Mitsubishi UFJ and Sumitomo Mitsui rising after previously facing downward pressure.

However, the Nikkei’s momentum began to fade toward the close as oil prices ticked upward. Uncertainty surrounding negotiations between the United States and Iran fueled inflation concerns, leaving investors cautious regarding future costs and monetary policy.

On the economic front, Japan’s exports grew again in September, marking an expansion for the 13th consecutive month. This growth was supported primarily by strong demand for semiconductors and AI-related products, although the pace of export growth fell short of market expectations. (asd)

Source: Newsmaker.id