Nikkei 225 Rises 1.2% on AI Trade and Wall Street Gains

The Nikkei 225 Index rose 1.2% to close at 66,376.25 on August 10, following a sharp opening rally driven by positive trading cues from Wall Street. The index initially jumped 907.87 points, or 1.38 percent, reaching 66,514.58 before settling. Gains were primarily fueled by technology stocks and exporters, with a broadening AI trade that expanded from chipmakers to include optical fiber, power systems, and metals. Companies such as Advantest, Tokyo Electron, Furukawa Electric, Ibiden, and Sumitomo Metal Mining led the surge, while Recruit Holdings saw shares increase by nearly 23 percent.

Market sentiment was supported by weaker U.S. labor data, which lowered expectations for Federal Reserve rate hikes. However, gains were partially offset by declines in financial stocks, including Mitsubishi UFJ Financial, and automakers such as Toyota and Honda. The broader TOPIX also rose 0.63% to 4,100.61.

Investors simultaneously monitored the Bank of Japan following a summary of its July meeting, which revealed that at least three board members support faster rate increases to combat inflation. In the currency market, the yen traded in the 157.88 to 158 range against the U.S. dollar. Meanwhile, the administration of Prime Minister Sanae Takaichi continues to implement household relief measures and a long-term growth strategy targeting strategic sectors through 2040.