FX.co ★ Japanese Shares Rebound on Tech Rally

Japan's stock markets experienced a significant surge on Thursday, as the Nikkei 225 climbed 3.6% to approximately 50,300, and the Topix increased 2.6% to 3,330. This rally broke a four-day losing streak, driven by a rise in technology and AI-related stocks following Nvidia’s positive earnings report. Nvidia, which saw its shares jump over 5% in after-hours trading, reported robust earnings and revenue, along with an optimistic sales forecast for the fourth quarter. CEO Jensen Huang highlighted an extraordinary demand for its Blackwell chips, stating it is "off the charts." These results provided reassurance amidst recent anxieties about a potential AI market bubble due to valuation concerns. In Japan, significant gains were observed in companies such as SoftBank Group (up 7.3%), Kioxia Holdings (up 9.6%), Advantest (up 10%), Fujikura (up 9.7%), and Tokyo Electron (up 6.4%). Market participants also monitored currency fluctuations, as the yen depreciated to roughly 157 per dollar amid anticipations of substantial fiscal stimulus, leading to renewed verbal intervention from government officials.