Nikkei rebounds as Japan's trade deficit nearly triples forecasts

Japan's Nikkei 225 rebounded Wednesday as investors returned to semiconductor and AI-related stocks, though gains faded from an early peak. The index rose as much as 2.1% before settling around 1% higher at 64,718.98, following Tuesday's close 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 forecasts. Imports grew 18.9%, leaving a trade deficit of ¥536.6 billion ($3.39 billion), nearly triple the ¥181 billion economists had expected. Early gains were led by AI-linked firms including Kioxia, Advantest, and SoftBank Group. The trade data highlights Japan's reliance on foreign AI investment, with slower-than-expected growth raising sustainability questions. Brent crude remained near $110 a barrel amid Middle East shipping disruptions, while the yen traded around 158.33 per dollar. The Bank of Japan, which raised rates to 1.25% in September, meets again October 30.