In brief
Tokyo’s stock market ended the day in a mixed session, with the Nikkei index rising 1.08% to 63,954.19 while the broader Topix index slipped 0.14% to 3,991.71. Shares tied to artificial intelligence saw gains as concerns about their profitability ease, but the climb in West Texas Intermediate crude futures above $100 a barrel weighed on the market. Traders await key policy decisions from the U.S. Federal Reserve and the Bank of Japan later this week.
Tokyo stocks finished the day in a mixed state as investors weighed the dual forces of growing optimism around artificial intelligence (AI) and the negative impact of rising crude oil prices on market sentiment. The city’s flagship Nikkei index climbed 1.08% to close at 63,954.19, while the broader Topix index fell 0.14% to 3,991.71, according to a report from Xinhua.
Artificial intelligence‑related shares provided the day’s main upside. As worries about the profitability and sustainability of massive investments in the sector eased, AI and semiconductor‑related stocks tracked their U.S. counterparts higher. A notable driver was the positive response to the initial public‑offerings prospectus of U.S. AI company Anthropic, which drew buyers to the Tokyo market for a second straight session, the Xinhua story noted.
The rise in West Texas Intermediate crude futures, which topped $100 per barrel, proved a pressure point for the broader market. The price surge pushed Japanese government bond yields higher and weighed on names that are sensitive to inflation and fiscal policy, Xinhua said. Heavyweights in non‑tech sectors saw selling, and more than half of the listed firms ended lower.
While technology names benefited from a slightly bullish stance, the overall performance split highlighted the divergent sentiment between AI‑driven innovation and traditional industrial exposure. Analysts pointed out that the Nikkei’s 685.82‑point gain was largely powered by a handful of heavyweights such as Nvidia and other chipmakers, whose shares moved in the same direction as their American peers.
Participants in the market adopted a wait‑and‑see approach as they anticipate policy decisions from two central banks. The U.S. Federal Reserve and the Bank of Japan are scheduled to announce their guidance later in the week, and traders expect that the outcomes will influence the trajectory of both Japanese equities and foreign exchange markets, analysts said in the report.
In addition to bond yields, the escalating oil price underlined the importance of inflation expectations for the Japanese yen. Higher OPEC‑led crude prices have historically spurred expectations of stronger policy tightening globally, which in turn can lift yields on risk‑free securities and depress risk‑seeking asset classes. This dynamic was also reflected in the small decline in the Topix, which includes a broader range of sectors more sensitive to interest‑rate adjustments.
Looking ahead, the Tokyo market will be closely monitored to see how the earnings cycle interacts with the macro backdrop outlined by the two major policy players. As investors in both the technology and energy sectors await the forthcoming announcements, the market remains poised to respond to whatever signals come out of Washington and Tokyo, the Xinhua report concluded.
