TOKYO - Japan's benchmark Nikkei 225 Stock Average surged 1,684.08 points, or 2.87%, to close at 60,459.58 on Tuesday, November 10, 2026, at 3:30 p.m. Japan time, recovering the psychologically important 60,000 level for the first time in three trading sessions as investors bought back artificial intelligence and semiconductor shares following a sharp rebound on Wall Street.
The Tokyo market extended its recovery for a second consecutive session, with buying spreading across technology, industrial and financial stocks. The broader Topix index climbed 75.55 points, or 1.98%, to 3,893.71, while 24 of the Tokyo Stock Exchange's 33 industry sectors finished higher.
The Nikkei opened at 59,372.28 and advanced rapidly during morning trading, reaching an intraday high of 60,743.97 before closing at 60,459.58. Its low for the session was 59,268.43, reflecting sustained buying interest throughout much of the day despite some profit-taking near the highs.
The advance followed a strong recovery in US equities on November 9, when the Dow Jones Industrial Average jumped 1,104.02 points, or 2.15%, to 52,389.75. The S&P 500 rose 2.35%, while the technology-heavy Nasdaq Composite gained 2.74%, supported by renewed demand for semiconductor and large technology companies.
Investor sentiment also improved as tensions surrounding Iran appeared to ease, pushing crude oil prices lower and reducing concerns that rising energy costs would intensify global inflation. Expectations of renewed diplomatic efforts helped support equity markets across Asia, including South Korea, where the Kospi recorded strong gains.
SoftBank Group was the largest contributor to the Nikkei's advance, with its shares jumping nearly 14% as investors returned to companies associated with the global AI investment boom. The technology investment group added approximately 382 points to the benchmark index, accounting for almost a quarter of the day's total gain.
Semiconductor testing equipment manufacturer Advantest was another major contributor, adding approximately 284 points to the Nikkei, while chipmaking equipment manufacturer Tokyo Electron contributed about 260 points. Together, the three companies accounted for more than half of the index's advance, illustrating the significant influence of AI-related companies on Tokyo's market movements.
Other technology-related shares also attracted strong demand. Kioxia Holdings, a major producer of NAND flash memory, advanced alongside semiconductor equipment manufacturer Kokusai Electric and electrical equipment maker Furukawa Electric. Kokusai Electric reached its daily upward price limit after management outlined growth ambitions for the fiscal year ending March 2028, including a target for sales to increase 40% and an adjusted operating profit margin of at least 30%.
Investors also welcomed strong monthly sales figures from Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, reinforcing expectations that spending on advanced semiconductor production and AI infrastructure would remain robust despite recent concerns about excessive technology valuations.
Financial stocks participated in the recovery, with banking shares benefiting from renewed investor interest following their recent underperformance. Machinery manufacturers, textile producers and electrical equipment companies were also among the strongest sectors, suggesting that the buying extended beyond the market's largest technology companies.
Nevertheless, the advance was not universal. Toyota Motor, Sony Group and Nintendo finished lower, while food manufacturer Kikkoman came under particularly strong selling pressure because of concerns about slowing soy sauce sales in North America. Kawasaki Heavy Industries also declined despite raising its earnings forecast, as investors judged the revised outlook to be less encouraging than expected.
Market activity remained exceptionally heavy. Trading volume on the Tokyo Stock Exchange's Prime Market reached approximately 3.03 billion shares, while turnover totaled about 9.16 trillion yen. Advancing stocks numbered 1,203, compared with 328 declining issues and 20 unchanged, indicating broad participation in the rebound.
The yen remained relatively weak against the US dollar, trading around 158 yen per dollar during the afternoon. At 5 p.m. Japan time, the exchange rate stood at approximately 158.01 to 158.02 yen per dollar. The currency's weakness continued to provide a potential earnings advantage for Japanese exporters, although its effect varied across industries.
Japan's government bond market moved in the opposite direction to equities, with yields rising following a weaker-than-expected auction of 30-year government bonds. The yield on the benchmark 10-year Japanese government bond reached 2.690% during afternoon trading, up 0.025 percentage points from the previous session. The auction raised fresh concerns about demand for long-dated Japanese government debt and the pressure that higher borrowing costs could place on public finances.
Despite Tuesday's powerful advance, the Nikkei remained below levels seen before the previous week's selloff. The index had plunged 3,643.13 points on November 6 before recovering 1,340.73 points on November 9. Tuesday's rise brought its cumulative two-session recovery to 3,024.81 points, reversing approximately 83% of the November 6 decline.
The sharp swings have highlighted the sensitivity of Japanese equities to developments in US technology shares, geopolitical tensions and expectations for global interest rates. Investors have become increasingly focused on whether the substantial capital expenditure required for artificial intelligence development will translate into sustainable corporate earnings.
Attention is now turning to upcoming US inflation figures, which could influence expectations for the Federal Reserve's next interest rate decision. Higher-than-expected inflation could renew pressure on technology valuations and bond markets, while softer figures could encourage investors to extend the recovery.
For Tokyo investors, the immediate question is whether the Nikkei can consolidate its return above 60,000 and build on two consecutive sessions of strong gains. Although the recovery has restored a substantial portion of the previous week's losses, continued volatility in semiconductor shares, movements in the yen and changes in global borrowing costs remain important risks to the market's near-term outlook.
