Japanese stocks are on a roll, benefiting from the Tokyo Stock Exchange’s push on corporate governance and lately from euphoria over artificial intelligence investments.The Nikkei regained its lead, reaching an intraday record of 52,636.87 on November 4, after Sanae Takaichi was elected prime minister following a campaign of massive fiscal stimulus.
“The first half of the year was weighed down by global economic instability, including rising prices, labor shortages and US tariffs,” Takaichi said at a ceremony at the fair after the closing bell.
“But in the second half, the resilience of Japanese companies, along with policy support, drove the Nikkei to a remarkable turnaround, rising above 50,000 for the first time in history.”
Wall Street’s major indexes ended lower overnight as technology stocks retreated from last week’s rally that pushed the S&P 500 to record highs. The decline in U.S. stocks and a slump by domestic AI heavyweight SoftBank Group were the main factors dragging down Japanese shares, Nomura Securities strategist Wataru Akiyama said.
“Rather than a blurring of expectations around AI, this appears to be driven by year-end customization sales amid thin trading,” Akiyama said. “So we’re not too concerned given how much share prices have risen this year.”
SoftBank fell 1.9%, the biggest drag on the Nikkei, after the company said it would buy digital infrastructure investor DigitalBridge Group in a deal worth $4 billion. SoftBank shares rose 93% in 2025.
There were 61 advancers on the Nikkei index, compared to 162 decliners. The biggest gainers in the index were Fujitsu, up 2.3%, followed by Screen Holdings, which added 1.6%. The biggest losers were Sumitomo Metal Mining, down 4.8%, followed by online retailer Rakuten Group, which fell 2.7%.
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