Japanese Shares Reverse Early Losses

The Nikkei 225 Index rose 0.7% to above 69,000 on Friday, recovering from earlier losses as weaker-than-expected US jobs data led investors to scale back expectations for Federal Reserve interest rate hikes this year. The softer labor report helped offset persistent concerns over the AI sector, where investors continue to question whether aggressive investment and intensifying competition can justify lofty valuations and sustain long-term earnings growth. Meanwhile, the yen’s nearly 1% surge on Thursday, fueled by speculation that Japanese authorities could intervene in the currency market at any time, remained a headwind for domestic equities. Among individual stocks, Kioxia Holdings jumped 7.3%, followed by Kokusai Electric (6.5%), Fast Retailing (4.3%), Sony Group (2.3%), and Toyota Motor (1.1%).

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