Japan's Nikkei 225 Rebounds as AI-Financing Worries Ease

Japan's Nikkei 225 index rebounded strongly on Friday, rising 1.82% to 65,598.63, after a 4.9% plunge on Thursday—its worst daily drop since March—as lower US Treasury yields and Wall Street's recovery drew investors back to AI-hit stocks. The rebound was supported by easing concerns over AI financing after Nvidia CEO Jensen Huang defended CoreWeave's financial position, while gains at Toyota and Mitsubishi UFJ indicated buying spread beyond the technology sector. However, Friday's recovery only partially offset losses from a six-session decline. The Nikkei's heavy concentration in tech—with Advantest at 11.5% index weight and Tokyo Electron above 8%—amplified both the selloff and rebound. Analysts warned that simultaneous declines in stocks and bond yields could signal the early unwinding of an AI boom rather than a simple correction.