Nikkei rises 2.6% to 60,279.37 as SoftBank shares jump 15%
Key Facts
The Nikkei 225 rose 2.6% to 60,279.37 during trading on Tuesday, November 10, according to the Associated Press, as technology and chip stocks advanced. SoftBank Group shares jumped 15% ahead of the company's results, due later in the day, after falling to a one-year low on Monday. Tokyo Electron shares rose 5.6% and Advantest gained 3.4%, the agency reported. The gains came in a market influenced by moves in global technology stocks and concerns about financing AI data centers. The level reported by the agency is not the morning-session close cited in the draft; it was a level recorded during trading.
Tokyo's advance coincided with a recovery in U.S. stocks in Monday's session on November 9, when the S&P 500 rose 2.3% and the Nasdaq Composite gained 2.7%, according to the Associated Press. Wall Street gains extended for a second consecutive day for the first index, while the Nasdaq added to its gains amid a rebound in technology stocks. In early trading Tuesday, Brent crude fell 0.9% to $91.74 a barrel. The dollar rose to 158.06 yen from 157.90 yen. EL7 data show the Nikkei closed at 58,775.5 on November 9, after closing at 57,434.77 on November 6.
The Associated Press linked the decline in oil to comments by U.S. President Donald Trump to CNN over the weekend, when he said a resumption of strikes on Iran was "highly unlikely" if negotiations made progress toward ending the war. The agency cited investor concerns about possible government restrictions on the AI data center sector, alongside higher borrowing costs. These factors leave technology stocks balancing AI-related demand against the cost of financing the infrastructure it requires. Chip equipment makers' gains were among the most notable moves in Tokyo trading Tuesday, alongside SoftBank's jump ahead of its results. EL7 records show SoftBank shares traded in the United States closed at $11.75 on November 9.
The Bank of Japan said in its July Outlook Report that the economy is likely to continue growing at a moderate, though slower, pace, supported in part by rising AI-related demand. At the same time, the bank said higher oil prices linked to the situation in the Middle East could weigh on the economy. It identified developments in AI-related demand, foreign exchange rates and the situation in the Middle East as risks to monitor when assessing economic activity and prices. The bank said it would continue raising its policy interest rate and adjusting the degree of monetary easing in response to developments in activity, prices and financial conditions, while assessing the timing and pace of any adjustment. The bank bases its monetary policy on its 2% price stability target.
Japan's next economic release is the preliminary estimate of gross domestic product for the July-to-September period, scheduled for November 16 Japan time, according to the schedule of the Cabinet Office's Economic and Social Research Institute. The release follows Tuesday's session, when the Nikkei and chip company shares rose, while investors await SoftBank's results, due later the same day. Moves in oil and the yen remain among the factors cited in the Bank of Japan report in its assessment of activity and prices. That assessment also includes monitoring AI-related demand, which the bank described as one of the factors supporting growth. The upcoming release comes as markets track Japan's economic performance and regional risks.