FX.co ★ Japanese Stocks Recover on OpenAI Reports

The Nikkei 225 Index closed virtually flat at 69,031 on Friday, recovering most of its earlier losses after reports suggested that OpenAI expects its annualized revenue to reach or exceed $70 billion by year-end. The update eased worries sparked by earlier indications that the company’s annualized revenue as of September was running $20 billion below previously signaled levels.

Market participants remain focused on whether AI-related revenues can ultimately justify the sector’s heavy investment outlays, particularly given the central role Japanese companies play in building global AI infrastructure. Sentiment was also supported by easing bond yields and falling oil prices, after President Donald Trump said the United States was engaged in “productive discussions” with Iran and would refrain from attacking the country before the midterm elections.

Even so, technology and AI-linked shares remained under pressure, with Kioxia Holdings down 2.2%, SoftBank Group off 3.9%, and Murata Manufacturing losing 3.6%.