The Nikkei 225 briefly gained more than 1,200 points, recovering to the ¥68,000 level for the first time in 4 weeks. The slowdown in US CPI growth and movements in AI and semiconductor-related stocks are believed to have been the main drivers.
The Nikkei 225 rose by more than approximately 1,900 points over 2 business days and held onto its highs toward the close. Gains in AI and semiconductor-related stocks were cited as the main driver, raising investor interest.
Following a slowdown in US consumer price index growth for the second consecutive month, technology stocks were bought in the US market, and a sector-based shift in funds spread to the Japanese market. Market participants pointed to sector rotation, with funds flowing into stocks with strong growth prospects.
In the foreign exchange market, developments surrounding coordinated intervention by Japan and the US were also closely watched, and the yen briefly moved into the ¥159 range. Some view excessive yen weakness as negative for the market, and future developments remain a focus.
Ahead of the Bank of Japan's monetary policy meeting, expectations that interest rates will remain unchanged have grown, making movements in the yen and the direction of monetary policy the market's main focus.