The Nikkei 225 surged toward 70,000 today, briefly breaking above that level intraday before closing at 69,946.86, up 2.4% on the day and effectively pushing straight through the resistance it had faced earlier.
What I find most noteworthy about this rally isn’t that “Japanese stocks have hit another record,” but that AI and semiconductors are once again driving the market. Tokyo Electron rose 5.5%, and SoftBank gained 3%, as investors clearly started moving back into AI-related assets.
But the area around 70,000 isn’t risk-free. Japanese government bond yields also climbed, and debate is starting to emerge over whether AI valuations are justified and whether future earnings can keep pace. A deputy governor of the Bank of Japan also cautioned today that while the AI boom has improved financial conditions, the market could still pull back if expected profits fail to materialize.
Can the Nikkei really hold above 70,000, or will this be another rally that quickly reverses?
Do you think this marks a second leg in Japan’s AI rally, or has sentiment simply run ahead of fundamentals?
$JPY.ETF $BTC $ETH
What I find most noteworthy about this rally isn’t that “Japanese stocks have hit another record,” but that AI and semiconductors are once again driving the market. Tokyo Electron rose 5.5%, and SoftBank gained 3%, as investors clearly started moving back into AI-related assets.
But the area around 70,000 isn’t risk-free. Japanese government bond yields also climbed, and debate is starting to emerge over whether AI valuations are justified and whether future earnings can keep pace. A deputy governor of the Bank of Japan also cautioned today that while the AI boom has improved financial conditions, the market could still pull back if expected profits fail to materialize.
Can the Nikkei really hold above 70,000, or will this be another rally that quickly reverses?
Do you think this marks a second leg in Japan’s AI rally, or has sentiment simply run ahead of fundamentals?
$JPY.ETF $BTC $ETH
