Solid Gold Berjangka – Japan’s Nikkei 225 index rose 0.85% to close at 64,621 on Wednesday (October 21), rebounding from a one-month low. The gains were primarily driven by technology stocks linked to artificial intelligence, following a resurgence in sentiment toward AI-related investments.
Market optimism grew after server manufacturer Super Micro Computer reported strong performance, reinforcing expectations for sustained spending on AI infrastructure. Positive sentiment was further bolstered by the growth of AI-driven businesses and SpaceX’s satellite internet venture, which strengthened the outlook for the global technology sector.
Several Japanese tech stocks saw gains: Kioxia Holdings rose 2.8%, Advantest climbed 1.7%, SoftBank Group increased 1.5%, Lasertec gained 1.5%, and Taiyo Yuden rose 1.7%. The financial sector also strengthened, with Mitsubishi UFJ up 2.4% and Sumitomo Mitsui rising 2.3%.
However, the Nikkei failed to hold onto all of its intraday gains as oil prices climbed amid uncertainty surrounding negotiations between the United States and Iran. Rising energy costs reignited concerns about inflation and the potential for increased production costs for Japanese companies.
Meanwhile, Japan’s exports in September grew less than anticipated, though they still marked an expansion for the 13th consecutive month. Strong demand for semiconductors and AI-related products remains a key pillar of support; consequently, the future direction of the Nikkei is expected to remain sensitive to developments in the technology sector, oil prices, and the global trade outlook. (srh)