Nikkei Soars 1.48% Amid US AI Investment Announcement

Japan's Nikkei share average rose significantly, climbing 1.48% to 39,604.71, driven by investor enthusiasm following President Trump's announcement of a $500 billion investment in AI infrastructure, including a joint venture with OpenAI and SoftBank. The positive sentiment in the market overshadowed prior concerns regarding tariff plans, as technology stocks, particularly SoftBank Group, saw substantial gains. Analysts noted that the market's focus has shifted towards potential job creation and economic growth linked to the AI sector, with over 100,000 jobs expected from the initiative. In contrast, financial stocks fell, contributing to a mixed performance in the broader Topix index, which rose 0.94%. Overall, the day marked a notable rally for Japan's markets amidst global economic uncertainties and the impact of U.S. political developments. Investors remain cautious but optimistic about the potential for ongoing gains in light of these announcements.