FX.co ★ Japanese Shares Climb on Tech and AI Rally

On Friday, the Nikkei 225 Index surged by 1.35% to settle at 49,299, while the broader Topix Index edged up 0.48% to 3,269, effectively reversing losses from the previous trading session. This uptrend was primarily driven by gains in technology and AI-related stocks. The tech sector experienced renewed optimism following Prime Minister Sanae Takaichi's announcement of targeted investments in AI and other critical industries. Among the major stock performers were SoftBank Group with a 5.3% rise, Kioxia Holdings jumping 18.6%, Fujikura gaining 3.9%, Advantest increasing by 4%, and Disco Corp climbing 5.1%.

Japanese equities also reflected a positive response to the tech-driven rally on Wall Street overnight. Moreover, market sentiment improved after the White House confirmed the upcoming meeting between President Trump and President Xi. In other economic news, Japan's core inflation rate rose to 2.9% in September, up from 2.7% in August. Despite this acceleration in inflation, the Bank of Japan is anticipated to maintain its current interest rates unchanged in the upcoming week.