Japanese Stocks Poised for Rebound on AI-Led Rally and Weaker Yen
The Japanese market is poised for a rebound on Thursday as AI-related stocks lead the global rally and the yen weakens against the dollar. The Nikkei 225 futures have already reflected this optimism, rising about 2.5% in Osaka since Friday's close.
Chip-equipment makers like Tokyo Electron Ltd. and Advantest Corp. are expected to gain as the sector benefits from the AI-led rally, while memory maker Kioxia Holdings Corp. is also likely to see an uptick. The renewed interest in AI has sparked enthusiasm after recent calls by top US firms to slow development.
However, a weaker yen may bring some caution to traders, with options sentiment turning more bullish as the currency weakens. 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.