TOKYO: Japan's Nikkei share average rebounded on Monday after a sharp rout in technology stocks last week pushed the benchmark into bear market territory.
The Nikkei 225 rose 2% to 58,584.11 in early trade, recovering some of Friday's 6% slump, which left the index more than 20% below its record high reached in June. The broader Topix gained 2.8% to 3,810.91.
On Friday, the Nasdaq gained 1.09% and the S&P 500 rose 0.32%, led by information technology stocks.
Nvidia and Tesla bounced back after sharp losses earlier in the week on fears that Democratic election victories could bring stricter AI oversight and dampen data-centre spending.
"Wariness about US policy moves such as AI regulation runs deep, and once the initial buying has run its course, gains could struggle to extend," Takuma Ikemoto, a market analyst at Tokai Tokyo Intelligence Laboratory, said in a note.
US President Donald Trump said on Sunday he was highly unlikely to order fresh attacks on Iran as long as talks progress, with Qatar mediating, even as both sides reported vessels hit in or near the Strait of Hormuz. The eight-month conflict has disrupted energy flows through the region.
Market breadth was overwhelmingly positive, with 214 of the 224 Nikkei 225 names trading higher and 10 lower.
The largest percentage gainers in the index were Renesas Electronics, up 6.64%, followed by Japan Steel Works , 6.41% higher, and Baycurrent, which gained 5.88% and was on track for a record-high close.
The largest losers were Tokyu Fudosan Holdings, down 5.41%, followed by SoftBank Group, 4.73% lower and on track for its lowest close since August 2025, and Mitsui Fudosan, which lost 4.50%. - Reuters
