The Nikkei 225 Index experienced a notable rebound, recovering from previous losses despite global headwinds. The Japanese market shrugged off negative signals from Wall Street and geopolitical concerns to close higher, driven by strength in tech and AI-related sectors. However, defense stocks faced downward pressure due to new export controls imposed by China.
- The Nikkei 225 Index rose 0.87% to close at 57,321.
- The rebound followed a holiday-extended weekend in Japan.
- US Supreme Court struck down Trump’s emergency tariffs on Friday.
- Tokyo sought clarification from Washington to safeguard Japanese firms regarding the tariff ruling.
- Tech and AI-related stocks led the gains, specifically Kioxia Holdings (8.3%), Fujikura (10%), and Advantest (4.5%).
- Defense stocks declined after China added 20 Japanese entities to an export control list, with Mitsubishi Heavy Industries losing 3.1%.
The market demonstrated resilience in the face of international economic and political pressures, suggesting underlying strength in certain sectors. Positive movement within the technology and AI industries indicates investor confidence in these areas, while concerns about trade relations and geopolitical tensions continue to impact specific industries.