FX.co ★ Japanese Shares Rally on AI Momentum

The Nikkei 225 Index climbed by 1.3% to reach 50,900 on Wednesday, setting new record highs. This surge mirrored the tech-driven upswing on Wall Street, as continued enthusiasm for artificial intelligence bolstered market sentiment. Nvidia, a leading company in the AI sector, achieved unprecedented highs following CEO Jensen Huang's announcement of several new partnerships, dismissing worries of an AI sector bubble. Japanese companies with significant involvement in AI or the global semiconductor supply chain saw substantial gains, including Advantest (up 14.7%), SoftBank Group (up 2.1%), Lasertec (up 5.9%), Fujikura (up 4.3%), and Disco Corp (up 2.5%). Investors also positioned themselves in anticipation of a potential interest rate cut from the US Federal Reserve expected later on Wednesday, whereas the Bank of Japan is expected to maintain its current policy stance on Thursday. Additionally, on Tuesday, US President Donald Trump met with newly appointed Prime Minister Sanae Takaichi to reinforce US-Japan relations, culminating in agreements on trade and critical minerals, which formalized elements of a wider pact initiated by Takaichi’s predecessor.