Tokyo stocks rebounded Monday after a steep fall of more than 3,600 points on Friday, the largest point drop in record history for a single day. The Nikkei 225 rose 1,340.73 points, or 2.33 percent, to close at 58,775.50, while the broader Topix finished 110.17 points, or 2.97 percent, higher at 3,818.16.
Investors on Monday bought back shares that had been sold off after Friday’s plunge, with the rally driven by a sharp dip‑buying surge in artificial‑intelligence and semiconductor‑related stocks. The dip‑buying spread across a wide range of issues as traders sought bargains after the sharp losses, echoing a late‑week rebound seen on Wall Street.
Analysts noted that the late‑week rebound in Tokyo mirrored gains in U.S. technology shares, which had regained some ground after heavy selling in September and concerns about tighter regulation of data‑center construction and AI investment following the midterm elections. The rally also saw heavyweights such as Advantest, Tokyo Electron and Fast Retailing push higher, while companies reporting strong earnings attracted buying.
Some market analysts described the rebound as "weak" and warned that the future of technology shares had become uncertain, casting doubt on the market’s near‑term direction. The outlook for technology stocks remains unclear, with uncertainty about regulatory developments and investment environments highlighted.
While the rebound has been confirmed by the exchange data and corporate responses, the analysis of the rally’s strength and the long‑term prospects of the technology sector remains a subject of debate among analysts, with contrasting views on whether the current rise will sustain.