Japan's Nikkei Rebounds as Trade Deficit Nearly Triples Forecasts

Japan's Nikkei 225 rebounded Wednesday as investors returned to beaten-down semiconductor and AI stocks, though gains faded from an initial surge. The index rose as much as 2.1% before trimming its advance to about 1% by midday Tokyo time. September exports rose 16.7% year-on-year, extending Japan's growth streak to 13 months but missing the 20.1% forecast. Imports climbed 18.9%, leaving a trade deficit of ¥536.6 billion ($3.39 billion), nearly triple the ¥181 billion economists expected. The rebound was led by AI-linked firms like Advantest (+4.8%) and Kioxia (+5.1%), supported by strong guidance from Super Micro Computer. However, concerns persist over AI financing, energy costs near $110 per barrel, and potential Bank of Japan rate hikes after September's increase to 1.25%.