The Nikkei Average rose for a fourth straight day. Against a backdrop of gains in US technology stocks, buying led SoftBank Group, while Sumitomo Electric Industries and NEC announced a collaboration with US-based Meta on a subsea cable project.
The Nikkei Stock Average rose for a fourth consecutive day. After climbing to ¥66,249.11 in morning trading, it struggled to extend its gains. Gains in US technology stocks provided support, while rising long-term interest rates weighed on the equity market. Investors also focused on the issues expected to be discussed at a US-China summit, as well as oil prices and interest-rate trends.
SoftBank Group traded with buying in the lead. Buying was supported by gains in US technology stocks over the holiday period and news of a bond issue, and the stock reached an intraday high in morning trading before paring its gains.
Sumitomo Electric Industries, Meta Platforms of the US, and NEC announced that they would begin collaborating to build Petal, the world's first commercial-scale petabit-class optical subsea cable system. Petal will be a transatlantic cable spanning approximately 7,000 km, with operations scheduled to begin in 2029.
Topics expected to draw attention going forward include the commercialization of petabit-class cables, the impact of economic diplomacy related to AI, and developments in technological competition among Japan, the US, and China.