Japan's Nikkei Rebounds 2% After Tech Stock Rout
The Nikkei rebounded as 214 of 224 names rose while investors awaited U.S. inflation readings and earnings from major AI companies.
- The Nikkei share average rebounded 2% in early trade on Monday, recovering from a sharp 6% slump last week that pushed the benchmark into bear market territory.
- Investor fears that Democratic election victories could bring stricter AI oversight triggered the decline, as concerns mounted that tighter regulation could dampen data-center spending and development.
- Renesas Electronics led gainers, rising 6.64%, while Japan Steel Works followed at 6.41% higher; conversely, Tokyu Fudosan Holdings fell 5.41% and SoftBank Group dropped 4.73% to its lowest close since August 2025.
- Takuma Ikemoto, market analyst at Tokai Tokyo Intelligence Laboratory, warned that "wariness about US policy moves such as AI regulation runs deep" and gains could struggle to extend once initial buying concludes.
- Investors now await key inflation readings and upcoming earnings from major AI companies including CoreWeave, Cisco, and Applied Materials, due later in the week, to gauge market resilience.
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The hope of a relaxation in the Iran war provides confidence. Investors focus on the US inflation data, which could provide information on the future interest rate.
Asian Shares Mixed In Cautious Trade; Nikkei Rebounds Over 2%
Asian stocks ended mixed on Monday, even as artificial intelligence stocks recovered some ground lost in last week's sell-off on fears that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.
Japanese nikai rose 2.51% to 58874 points, replacing part of the losses of 6% on Friday, by supporting the recovery of technology shares, despite continuing concerns about the tightening of the American artificial intelligence organization.
The Japanese index of Nikki rose at the beginning of today's Monday dealings, backed by purchases following the severe losses of technology stocks last week, which prompted the index to enter the declining market range.
The Economic Times
Times of IndiaJapan's Nikkei rebounds 2% after tech stock rout
Japan's Nikkei 225 rebounded 2% on Monday following a sharp technology stock selloff that pushed the benchmark into bear market territory. The recovery was driven by Wall Street gains and tech sector stabilization, though market sentiment remained cautious amid ongoing Middle East tensions and US regulatory concerns.
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