AI No Longer Scary? Tokyo Stocks Rise
Japanese stocks rose in recent trading, as market concerns about the potential disruptions fueled by the development of artificial intelligence (AI) eased, at least temporarily. This strengthening reflects improving risk sentiment, with investors returning to sectors considered likely to benefit.
The gains were led by financial stocks. Dai-ichi Life Holdings rose 2.4%, while Resona Holdings gained 2.9%, indicating strong buying interest in banking and insurance companies.
In the foreign exchange market, USD/JPY was at 153.11, compared to 152.88 at the Tokyo stock market close on Tuesday. The yen's movement is also a concern as it could affect corporate earnings prospects and the direction of foreign capital inflows into Japanese equities.
Investors are also closely monitoring Prime Minister Sanae Takaichi's policy moves, including details of Japan's $36 billion investment plan in the United States. The investments cover critical minerals, oil and gas infrastructure, and power generation, which are seen as potentially impacting Japan's future industrial and energy strategy.
In line with this positive sentiment, the Nikkei Stock Average rose 0.8% to 57,017.46. The market is now awaiting further developments regarding government policies and cross-border investment flows, which could determine the index's strength in the coming sessions. (asd)
Source: Newsmaker.id
