Japanese Markets Set to Rise After Silver Week Holiday

Japanese equity markets are positioned for gains as trading resumes on Thursday following the Silver Week holiday. Nikkei 225 futures in Osaka rose approximately 2.5%, driven by a global rally in artificial intelligence and a weakening yen. Semiconductor firms, including Tokyo Electron Ltd. and Advantest Corp., are expected to lead the gains following AI advancements from Meta Platforms Inc. and Alibaba Group Holding Ltd.

Sanae Takaichi, the Prime Minister of Japan, met with U.S. President Donald Trump on Tuesday to discuss economic and security relations with China. This meeting occurred ahead of a scheduled summit between Trump and Chinese leader Xi Jinping.

Financial volatility persists as the yen recorded its fourth consecutive day of losses against the dollar, increasing the likelihood of currency intervention. While the Bank of Japan recently raised benchmark rates and signaled further tightening, bond traders remain uncertain due to a lack of clear guidance from the central bank.