The Nikkei 225 index rose 2.33% to reach 58,775 by the close of trading on Monday (November 9), recouping some of the sharp losses sustained the previous week. The gains were led by the financial and consumer sectors, driven by an improvement in market sentiment.
Banking stocks saw strong growth, with Mizuho Financial climbing 5.1%, Mitsubishi UFJ rising 4.4%, and Sumitomo Mitsui gaining 3.9%. The positive performance of the financial sector served as a key driver for the index's rebound.
The consumer and automotive sectors also provided support to the market. Fast Retailing rose 3.7%, Nintendo climbed 5.2%, and Toyota Motor increased by 4.6% during today’s session.
This recovery follows a more than 9% plunge in the Nikkei last week—the steepest weekly decline since the pandemic-induced sell-off in March 2020. The prior pressure was fueled by concerns regarding stricter regulations on the AI industry and a potential slowdown in the expansion of data centers.
Despite the rebound, Japanese technology stocks remain at risk of further pressure, given their significant exposure to the growth of global AI infrastructure. Investors will continue to closely monitor developments in AI regulation and broader global tech sentiment to gauge the future direction of the Nikkei. (srh)