The Nikkei225 gained 0.98%, recovering sharply from early session lows near 39,213 to close at 40,020. Enthusiasm over artificial intelligence applications sparked gains in the technology sector.
Announcements at the Las Vegas CES technology event highlighted AI advances, reigniting trader interest in the space.
With key names like Nvidia and AMD announcing their launch of AI systems and gaming chips, market participants have turned a keen eye onto the Nikkei225, pushing the index to a close of 40,020.15.
Picture: Nikkei225 stabilises near 40,020, pausing below 40,310 resistance as momentum moderates after strong gains, as seen on the VT Markets app.
This strong rally aligns with improved sentiment in global equities. However, the index faces resistance at 40,310, with traders cautiously awaiting further signals from upcoming corporate earnings and macroeconomic data.
Upcoming Japanese corporate earnings and US economic data will continue to influence sentiment. Any signs of central bank policy adjustments could also impact momentum.
Despite the market’s upbeat tone, traders remain cautious about escalating U.S.-China trade tensions, which could impact Japan’s export-heavy economy.
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Any developments in trade policy will be closely watched for their potential to disrupt supply chains and affect corporate earnings in key sectors like technology and manufacturing.
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