Nikkei jumps 2.5% above 70,000 to three-month high as AI stocks rally
Japan's Nikkei index rose over 2% to reach a three-month high, driven primarily by strong investor interest in AI-related technology stocks. While equities rallied, the bond market faced pressure as 30-year government bond yields hit record highs.
Why it matters
The market movement reflects global investor sentiment toward AI and the complex interplay between equity rallies and rising sovereign debt yields in Japan.
Japan’s Nikkei got an AI-powered boost on Monday, jumping over 2% to cross 70,000 for the first time in three months. Benchmark index Nikkei climbed 2.53% to 70,037.61 by the midday break, while the broader Topix gained 1.16% to 4,138.57.Chip-related companies emerged as the biggest drivers of Nikkei's rise. Tokyo Electron gained 5.7% and Advantest rose 4.5%, while technology investor SoftBank Group advanced 3.68%.Memory maker Kioxia, however, rose only 0.49%. Its shares remain nearly 50% below the record high reached in mid-June."Investors scooped up AI-related stocks, but the market sentiment is muted compared with earlier this year when the Nikkei hit a record high," said Mamoru Shimode, chief strategist at Resona Asset Management.
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