Nikkei 225 rebounds 1.82% after steepest drop since March

Japan's Nikkei 225 rebounded 1.82% to 65,598.63 on Friday, recovering from its steepest daily drop since March, as lower US Treasury yields and a late Wall Street rally encouraged investors to buy back into AI-led stocks. The recovery was supported by Nvidia CEO Jensen Huang's defense of CoreWeave's financial position, easing AI financing concerns, while gains in Toyota and Mitsubishi UFJ showed buying broadening beyond technology. However, Friday's rebound only partially repaired losses from a six-session decline. Thursday's selloff exposed the Nikkei's heavy AI concentration, with Advantest falling 15%, Tokyo Electron 7.8%, and SoftBank 7.8%, as technology comprised nearly 44% of the index. Analysts warned the simultaneous drop in stocks and Treasury yields could signal the early stages of an AI boom unwinding.