FX.co ★ Japanese Shares Climb as Tech, Banks Lead Gains

The Nikkei 225 Index climbed 2.4% to close at 69,947 on Monday, its highest level in three months, driven by strong gains in technology and financial shares. Japanese stocks also tracked Wall Street’s advance on Friday, after weaker-than-expected US employment data eased pressure on the Federal Reserve to continue raising interest rates.

Nonetheless, sentiment remained cautious amid elevated bond yields and persistent geopolitical uncertainty in the Middle East.

In corporate news, SoftBank Group Corp. founder Masayoshi Son, a prominent advocate of artificial intelligence, reiterated concerns about safety risks as AI systems rapidly gain new capabilities. He urged countries to build trust and cooperate in order to harness the technology responsibly.

Among notable movers, technology and banking shares led the rally, including Advantest (up 4.3%), SoftBank Group (3%), Tokyo Electron (5.5%), Mitsubishi UFJ Financial Group (2%) and Sumitomo Mitsui Financial Group (1.6%).