Nikkei Closes Up 2.9% at 60,459.58 as SoftBank Jumps 13.9%
Key Facts
The Nikkei 225 closed up 2.9% at 60,459.58 on Nov. 10, as technology stocks rose ahead of SoftBank's earnings announcement, the Associated Press reported. The group's shares jumped 13.9% before results were released later in the day, after touching a one-year low during Monday's session. Tokyo Electron, a chip equipment maker, rose 6.1%, while Advantest, which specializes in testing equipment, gained 4.6%. Gains extended to South Korea, where the Kospi rose 4.4% to 5,239.13. Samsung Electronics shares advanced 4.7% and SK Hynix rose 6.7%, in a regional move concentrated in chipmakers and their equipment suppliers.
Tokyo's gains followed a rally on Wall Street on Monday, where the S&P 500 rose 2.3% for a second straight session, the Dow Jones gained 2.2% and the Nasdaq rose 2.7%, according to AP. The agency linked support for stocks to a pullback in oil prices after comments by U.S. President Donald Trump about the war with Iran. Trump said a resumption of strikes was "highly unlikely" if the United States saw progress in negotiations aimed at ending the war. The comments provide context for the oil and stock moves tracked by the agency, as markets assess the impact of geopolitical developments on energy costs. This comes as technology stocks weigh AI-related demand prospects against the risks of financing the infrastructure required to support them.
The boom in AI data centers faces concerns that governments could impose restrictions on the sector, potentially reducing purchases of related products and services, AP reported. Higher borrowing costs could also slow construction of those centers. The Bank of Japan warned in its Financial System Report that lower expectations for the profitability of AI investments could amplify shocks through portfolio adjustments by foreign nonbank financial institutions. The bank said the effects of these moves could spread to Japan. It added that Japanese stocks could face a corrective pullback if earnings do not expand in line with the large AI investments by hyperscalers and other companies in the sector.
SoftBank Group reported a net loss attributable to owners of the parent of 768.0 billion yen for the six months ended Sept. 30, 2026. The report said the loss represented a year-on-year deterioration of 3,692.1 billion yen. Investment gains totaled 1,725.8 billion yen in the first half, compared with gains of 3,926.7 billion yen in the same period a year earlier. For its investment in OpenAI, the company reported a fair value of 99.6 billion dollars at the end of the second quarter, with a cumulative investment gain of 45.0 billion dollars. These figures put investment performance in context with the company's results, released in the same session in which its shares rose ahead of the announcement.
In its outlook published in July, the Bank of Japan said Japan's economy was likely to continue growing at a moderate pace during fiscal 2026, with rising global demand related to AI supporting activity, while higher oil prices linked to conditions in the Middle East were expected to weigh on it. Markets are awaiting the U.S. consumer price index report for October, scheduled for Tuesday, Nov. 10. AP estimated that annual inflation could rise to 3.9% from 3.7% in September. The Bank of Japan set its next monetary policy meeting for Dec. 17 and 18, 2026. These dates place U.S. inflation data and the bank's meeting among the upcoming events markets are tracking after gains in Asian stocks.