Japan’s Nikkei 225 Index advanced 1.39% to settle at 65,324 on Friday, recouping a portion of the prior session’s decline as downward pressure on technology equities abated. Market participants maintained their concentration on the trajectory of the artificial intelligence (AI) sector and its repercussions for global markets.
Positive market sentiment emerged following the release of a record third-quarter profit report from Taiwan Semiconductor Manufacturing Company (TSMC). Nvidia CEO Jensen Huang reinforced confidence in the financial resilience of AI computing provider CoreWeave. Concurrently, AI firm Anthropic announced a third-quarter revenue surge, expanding nearly twelvefold to $16.8 billion. Investor sentiment was further buoyed by Federal Reserve Chair Kevin Warsh’s commentary in Bangkok, where he refrained from indicating an imminent interest rate adjustment notwithstanding US inflation exceeding expectations.
Equities in the technology sector spearheaded the rebound, as Kioxia ascended 3.8%, Taiyo Yuden advanced 2.1%, and Lasertec increased 5.1%. Financial and consumer equities also registered gains, with Mitsubishi UFJ up 1.8% and Toyota Motor climbing 2.2%.
Despite Friday’s recovery, the Nikkei 225 experienced a 5.37% weekly decline, its most substantial drop since July. This underscores persistent investor apprehension regarding technology sector valuations, developments within the artificial intelligence arena, and the trajectory of US interest rates.