Japan's Nikkei Rebounds as AI Stocks Recover, But Trade Deficit Widens

Japan's Nikkei 225 rebounded Wednesday as investors bought beaten-down semiconductor and AI stocks, though the index gave up early gains to trade about 1% higher at 64,718.98. The recovery followed a 6% drop in SoftBank on Tuesday, with the benchmark closing at its lowest level in over a month. September exports rose 16.7% year-on-year, extending Japan's growth streak to 13 months but missing the forecast 20.1% increase. Imports grew 18.9%, producing a trade deficit of ¥536.6 billion ($3.39 billion), nearly three times the expected ¥181 billion, according to the Ministry of Finance. AI-related shares led gains, with Advantest up 4.8% and Kioxia rising 5.1%, supported by strong revenue forecasts from US server maker Super Micro Computer. The Bank of Japan meets October 30 after raising rates to 1.25% in September, while Brent oil hovered near $110 per barrel amid Middle East shipping disruptions.