Japan stocks rebound as tech shares lead gains

The Nikkei 225 rose 1.26% to close at 65,021 on Friday, ending a four-day losing streak. The rebound came as investors reduced expectations of a US Federal Reserve rate hike this month after Fed Governor Christopher Waller said he would support keeping rates unchanged if inflation continues to ease.

At the same time, investors are watching the Bank of Japan for a possible rate increase at its September meeting as it looks to manage inflation. Sharp moves in the yen also remained a key focus after the currency gained as much as 3% over two sessions.

Technology and AI-related stocks led the market higher. Kioxia Holdings jumped 5.4%, SoftBank Group surged 11.8%, while Taiyo Yuden gained 6.4%. Advantest and Fujikura also rose 2.5% and 2.1%, respectively.

Despite Friday?s recovery, the Nikkei fell 2.08% over the week. Higher oil prices and rising global bond yields continued to put pressure on Japanese equities.

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