Japan’s Nikkei share average recovered from early losses on Tuesday, led by a sharp rebound in technology investor SoftBank Group as investors reassessed concerns over the pace of artificial intelligence development, Reuters reported.
The Nikkei rose around 1% to 64,082.36 by the midday break, after initially trading lower. The broader Topix was little changed at 4,057.06.
Read more: Global Market Today: Asian stocks edge lower on AI concerns, oil gains
SoftBank rebounds after steep fall
SoftBank shares jumped 9.13%, clawing back part of the 10.7% decline recorded in the previous session. The selloff had been triggered by weakness in AI-linked stocks after executives at major US artificial intelligence companies highlighted risks associated with the technology and called for a slower pace of development.
According to Reuters, investors were reassessing whether the comments would actually lead to a sustained slowdown in AI investment by major technology companies.
AI and semiconductor-related stocks also advanced. Memory-chip maker Kioxia gained 2.73%, while chipmaking equipment suppliers Advantest and Tokyo Electron rose 0.8% and 0.33%, respectively.
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Banks weigh on Topix
The Topix remained subdued as gains in AI-related shares reduced demand for value-oriented stocks.
Banking stocks declined, with Mitsubishi UFJ Financial Group falling 0.83% and Sumitomo Mitsui Financial Group losing 1.98%. Sony Group also slipped 1.08%.
Leopalace21 hits trading limit
Leopalace21 was untraded amid a glut of buy orders after the apartment operator said Hikari Tsushin, along with investment funds, would launch a tender offer for the company at 1,000 yen per share.
Market breadth remained positive on the Tokyo Stock Exchange’s Prime Market. Of more than 1,500 stocks traded, 57% advanced, 38% declined and 4% were unchanged.
Reuters reported that investors were continuing to gauge whether the recent concerns over AI spending represented a temporary reassessment or a broader shift in expectations for technology investment.
