04.08.202607:04:21UTC+00Japanese Stocks Rebound on Tech Strength

The Nikkei 225 Index rose 0.32% to close at 63,957 on Tuesday, reversing earlier losses as a rebound in selected technology shares supported the broader market and signs emerged that the recent selloff in artificial intelligence-related stocks may be stabilizing. Leading gainers included Kioxia Holdings (up 6%), Fujikura (7.9%), Tokyo Electron (3.1%), Taiyo Yuden (3.8%) and Lasertec (7.8%).

In contrast, financial and consumer names continued to drag on the index, with notable declines in Mitsubishi UFJ (-2.7%), Sumitomo Mitsui (-1.5%) and Fast Retailing (-1.1%).

Investors also weighed the impact of the yen’s sharp appreciation following coordinated action by Japan and the US to support the currency, while staying alert to the risk of additional intervention. A stronger yen clouds the earnings outlook for Japan’s export-driven companies and tends to make domestic equities less attractive to foreign investors.