Japan Stocks Poised for Catch-Up Move Amid Global AI Rally
The Japanese stock market is expected to make up for lost time when trading resumes on Thursday, thanks in part to a global AI-led rally and a weaker yen. Nikkei 225 futures are already reflecting optimism, with December contracts traded in Osaka about 2.5% higher than the gauge's Friday settlement.
Chip-equipment makers such as Tokyo Electron Ltd. and Advantest Corp. are likely to be among the biggest winners on Thursday, according to Hu You, a senior research analyst at iFast Financial in Singapore. She also expects chip package substrate maker Ibiden Co. and memory maker Kioxia Holdings Corp. to gain.
The yen's weakness has raised concerns about currency intervention, with options sentiment turning more bullish as the currency weakens. Meanwhile, debt traders face conflicting signals ahead of Thursday's reopen, with uncertainty over the Bank of Japan's tightening path potentially weighing on Japanese government bonds.