FX.co ★ Japanese Stocks Rally on AI Optimism

The Nikkei 225 Index advanced 2% to climb back above 65,000 on Wednesday, rebounding from one-month lows. AI-related stocks led the move higher after strong earnings from US server maker Super Micro Computer improved the outlook for AI-related capital spending. Sentiment toward the sector was further lifted by robust results from Elon Musk’s SpaceX, underpinned by growth in its AI and satellite internet businesses.

Leading Japanese tech gainers included Kioxia Holdings (up 5.1%), Advantest (4.8%), SoftBank Group (3.5%), Lasertec (3.2%), and Taiyo Yuden (2.7%). Financials also staged a recovery, with Mitsubishi UFJ rising 1.6% and Sumitomo Mitsui adding 1.4%.

On the macro front, data showed Japanese exports rose 16.7% year-on-year in September, missing market expectations of 20.1% and marking the slowest pace of growth since April. Even so, exports extended their expansion to a 13th consecutive month, supported by solid demand for semiconductors and AI-related products.