Japanese stocks rise as AI optimism offsets geopolitical concerns

Japan?s stock markets ended higher on Monday, with the Nikkei 225 gaining 0.6% to close at 58,825 and the broader Topix Index rising 0.43% to 3,777. The rebound came after losses in the previous session, as strong interest in artificial intelligence stocks lifted sentiment despite growing geopolitical tensions.

Concerns remain after the United States seized an Iranian-flagged cargo ship in the Gulf of Oman, while Iran stepped back from reopening the Strait of Hormuz and ruled out taking part in further talks. Disruptions in this key shipping route have raised fears of an energy supply shock, increasing inflation risks and posing a threat to global growth?especially for energy-importing countries like Japan.

Despite these risks, optimism around AI and solid corporate earnings helped support the market. Major gainers included SoftBank Group, Lasertec, and Unitika.

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