The Nikkei Stock Average closed up ¥1,340, after temporarily rising by more than ¥2,000. The move was driven by buying back AI- and semiconductor-related stocks, and market participants said caution would still be necessary.
The Nikkei Stock Average temporarily recorded a gain of more than ¥2,000 in Tokyo trading at the start of the week, with the market opening broadly higher. Trading was led mainly by buying back AI- and semiconductor-related stocks.
Although the gain narrowed toward the afternoon, the index finished at a level ¥1,340 higher late in the session, closing at ¥58,775. The perception that prices were undervalued following the sharp drop at the end of the previous week was seen as a factor encouraging buying.
Concerns remain over AI investment and data-center regulations following the results of the US midterm elections, but some market participants said that buying back AI- and semiconductor-related stocks in New York spilled over into the Tokyo market. They said the latest rise reflected buying prompted by the perception that prices were undervalued and that caution would still be necessary.