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Japan's Nikkei closes at record as AI rally helps overcome early losses

Japan's Nikkei closes at record as AI rally helps overcome early losses

By Swedan Margen

Fashion

Japan’s Nikkei share average closed at a record high on Wednesday (Sep 24), fighting back from early losses on optimism buoyed by investments in artificial intelligence.

The Nikkei 225 Index rose 0.3 per cent to close at an unprecedented 45,630.31, recovering from earlier session losses as wide as 0.6 per cent. The broader Topix gauge gained 0.2 per cent.

Investor enthusiasm over AI has been a major driver in Wall Street and Japanese shares vaulting to ever higher records.

OpenAI, Oracle, and Japan’s SoftBank Group on Tuesday unveiled plans for five new AI data centres in the United States to build out their ambitious Stargate project.

Wednesday’s early declines were a corrective move after the index’s recent surge, while tech shares provided support, said Nomura strategist Maki Sawada.

“We continue to see AI-related and data centre-related stocks holding up well,” she added.

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Tokyo's Nikkei was the stand-out performer on Monday, rising more than one per cent, after the Bank of Japan said it would sell its ETFs gradually.
The BOJ intends to reduce its holdings by about 620 billion yen by market value per year.

There were 100 advancers on the benchmark against 121 decliners. Its 14-day relative strength index (RSI) began the session above 70, indicating an overheated market.

The Nikkei’s largest gainers were industrial manufacturer IHI, which rose 9.7 per cent, followed by SoftBank Group, which jumped 6 per cent.

The sharpest falls were in shares of utility Tokyo Electric Power, which was down 4.89 per cent, followed by video game maker Nexon, which sank 3.8 per cent. REUTERS

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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