TOKYO: Japan’s Nikkei share average rebounded on Monday after a tech-led selloff last week pushed the benchmark index into bear market territory.
The benchmark Nikkei 225 advanced 2.33 percent to close at 58,775.50, recouping part of Friday’s 6 percent slump that left the index more than 20 percent below its record high reached in June. The broader Topix climbed 2.97 percent to 3,818.16.
US technology shares recovered on Friday, with Nvidia and Tesla rebounding after steep losses earlier in the week.
The tech-heavy Nasdaq rose 1.1 percent, while the S&P 500 gained 0.3 percent, as concerns eased that Democratic election victories could lead to tighter oversight of AI and weaker data-centre spending.
“Wariness about US policy moves such as AI regulation runs deep, and once the initial buying has run its course, gains could struggle to extend,” Takuma Ikemoto, a market analyst at Tokai Tokyo Intelligence Laboratory, said in a note.
US President Donald Trump said on Sunday he was highly unlikely to order fresh attacks on Iran as long as talks progress, with Qatar mediating, even as both sides reported vessels hit in or near the Strait of Hormuz. The eight-month conflict has disrupted energy flows through the region.
Market breadth was overwhelmingly positive on Monday, with 208 of the Nikkei’s 225 components advancing and 17 declining.
Consulting services provider Baycurrent was the Nikkei’s top percentage gainer, rising 8.8 percent to a record closing high. Shimizu followed with a gain of 7.7 percent, while Mitsubishi Electric advanced 7.3 percent.