FX.co ★ Japanese Shares Rebound on Tech Boost

On Thursday, the Nikkei 225 Index surged by 1.73%, closing at 53,689, while the broader Topix Index rose 0.74% to settle at 3,616, effectively breaking a five-day losing streak. This upward movement in Japanese stocks was significantly driven by a robust rally in the semiconductor and artificial intelligence sectors. Investor sentiment received a substantial boost from remarks made by Nvidia CEO Jensen Huang at the World Economic Forum in Davos, which further fueled enthusiasm for AI investments.

In the technology sector, standout performers included Kioxia Holdings, which advanced by 8.6%, SoftBank Group rising by 11.6%, Lasertec gaining 5.8%, Disco Corp increasing by 17.1%, and Advantest climbing by 5%. Meanwhile, Japanese government bond yields declined from their historic peaks as investors continued to evaluate the nation's fiscal perspective. Additionally, domestic equities mirrored the gains seen overnight on Wall Street, following US President Donald Trump's decision to rule out using force in acquiring Greenland and scaling back tariff threats against European countries after agreeing on a framework for a future agreement.