Overview
- Tokyo stocks staged a sharp recovery after several days of heavy losses, with buying of AI and semiconductor shares pushing the Nikkei notably higher at the morning close.
- The broader TOPIX index did not rise in step and remained slightly lower, showing the rally was concentrated in a handful of large tech names that weigh heavily on the Nikkei.
- Crude oil futures climbed on worsening Middle East tensions, which capped equity upside by increasing cost worries for Japan’s energy-dependent economy.
- The yen traded in the mid-¥158 per dollar area as importers bought dollars to pay for rising fuel costs and as investors awaited upcoming U.S. consumer price data.
- The concentrated nature of the rebound matters because large-cap tech moves can swing the Nikkei quickly and because higher oil and U.S. inflation readings could shift global rate expectations and market positioning.