The Nikkei225 rebounded strongly, driven by excitement over artificial intelligence advancements showcased at a major tech event. While the market showed optimism, traders remain cautious, watching key earnings reports and trade tensions that could impact Japan’s economy.
Nikkei225 rises, boosted by AI momentum
The Nikkei225 index climbed 0.98%, rebounding sharply from early session lows of around 39,213 to finish at 40,020.
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Optimism surrounding artificial intelligence applications drove significant gains in the technology sector.
Announcements at the Las Vegas CES technology event showcased advancements in AI, reigniting interest among traders and investors in this space.
Technical analysis
Leading names like Nvidia and AMD revealed plans to roll out AI systems and gaming chips, drawing increased attention to the Nikkei225 and contributing to its close at 40,020.15.
Nikkei225 stabilises near 40,020, pausing below 40,310 resistance as momentum moderates after strong gains, as seen on the VT Markets app.
This rally reflects growing optimism in global equity markets.
However, the index is now approaching a key resistance level at 40,310.
Investors remain cautious, looking ahead to upcoming corporate earnings reports and macroeconomic data to guide their next moves.
Any indications of changes in central bank policies could also influence market dynamics.
Impact of US-China relations
While the market’s mood remains positive, lingering concerns over escalating US-China trade tensions persist. These developments pose potential risks to Japan’s export-driven economy.
Any shifts in trade policies could disrupt supply chains and weigh on corporate earnings in critical sectors such as technology and manufacturing.
Market participants are closely monitoring these issues for signs of further impact.
