AI Shares Lift Japanese Stocks Despite Economic Concerns

Japanese stocks rebounded on Monday as companies linked to the global semiconductor supply chain rose. The Nikkei 225 index gained 0.74% to close at 69,220, continuing its upward trend from last week.

The economy's growth in the second quarter was weaker than expected, with weak domestic demand offsetting strong exports. However, continued demand for artificial intelligence products supported companies like Kioxia Holdings, Fujikura, Advantest, Furukawa Electric, and Tokyo Electron, which all saw gains.

Financial and consumer stocks mostly fell on the day. Meanwhile, investors increased their bets on an imminent Bank of Japan rate hike as JGB yields hit fresh 30-year highs.