Japan's Nikkei rallies as AI demand outlook brightens By Rocky Swift
TOKYO: Japan’s Nikkei share gauge rallied on Wednesday on renewed optimism over demand in the red-hot AI sector. The benchmark Nikkei 225 climbed 1.56% to 65,074.56 in early trading, while the broader Topix gained 1.03% to 4,050.65. US shares rose overnight, while AI-related sentiment was boosted by SpaceX’s first profit as a public company. Separately, ByteDance, Alibaba and Tencent were…
Japan's Nikkei share gauge surged on Wednesday, buoyed by renewed optimism over demand in the rapidly growing AI sector. The benchmark Nikkei 225 index surged 1.56% to reach 65,074.56 in early trading, while the broader Topix index rose 1.03% to 4,050.65. US shares also climbed overnight, with the AI sector receiving a boost from SpaceX's first profit as a publicly traded company.
Additionally, tech giants ByteDance, Alibaba, and Tencent reportedly placed orders for over 3 million Nvidia RTX PRO 5500 GPUs, valued at more than $35 billion.
Japanese exports in September increased by 16.7% compared to the previous year, according to government data released on Wednesday. This figure was slightly lower than expected, but still highlighted the resilience of demand for semiconductors and AI-related products in the Japanese market. Monex Securities analyst Yoshitaka Araya noted in a statement that the positive sentiment in the US market had a firm tone, leading to a favorable opening for the Japanese market with buyers having the upper hand.
In the Nikkei 225 index, 140 stocks advanced while 85 declined. The largest percentage gainers were Mitsui Kinzoku, which increased by 7.10%, followed by Ibiden, which rose by 5.92%, and JX ADVANCED META, which gained 5.22%. On the other hand, Toho saw the steepest decline, falling 3.41%, while Shift dropped by 2.88%, and Aeon lost 2.46%.
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