STOCKS | Nikkei Rebounds as AI Rally Offsets Iran Conflict Fears

According to Jin10, Japanese stocks rebounded on Wednesday as worries over an escalation in the Middle East were replaced by an artificial intelligence rally, with the Nikkei 225 rising 0.35% after earlier falling and the broader Topix gaining about 0.24%. Nomura Securities equity strategist Maki Sawada said news that Verizon and Corning signed a multibillion-dollar deal to provide high-density fiber for AI infrastructure boosted confidence in Japanese cable makers such as Fujitsu, while Sawada added that semiconductor and AI-related stocks performed strongly and made a positive contribution to the Nikkei 225. Sawada also said the yen remained near a seven-month high as markets expected the Bank of Japan could accelerate rate hikes as early as next week's meeting, and Sony Financial Group analysts said the market appeared to have largely priced in yen appreciation and was expected to shift to buying on dips once initial selling pressure eased.