Tokyo’s Nikkei average closed higher on Tuesday, August 4, rebounding as strength in US equities lifted AI infrastructure-related shares, according to kabutan.jp.
The benchmark index rose 202 points from the previous close, the Nikkei reported. The advance was led by buying in AI infrastructure names, which benefited from the positive tone on Wall Street.
However, the gains were tempered by a correction in the yen’s recent weakness, which prompted selling in automakers and trading companies, according to the Nikkei. Those sectors had previously been supported by a softer yen, and their pullback limited the broader market’s upside.
NHK noted that the market saw a modest rise, with investors buying back stocks that had declined in prior sessions. This suggests the rebound was partly driven by bargain hunting rather than a broad shift in sentiment.
Despite the positive close, the Nikkei’s performance lagged the momentum seen in US markets, the Nikkei said. The inability to fully ride the wave of US gains points to lingering caution among domestic investors.
Looking ahead, market participants will likely focus on whether AI infrastructure demand continues to support tech-related shares, and whether the yen’s direction shifts further. Any sustained move in the currency could either extend or reverse the recent selling in exporters.
The session’s mixed tone — strength in AI names offset by weakness in autos and trading firms — underscores the selective nature of the current rally. Investors are weighing global tech optimism against domestic currency risks as they position for the rest of the week.
