Nikkei 225 closes higher as AI shares rebound 898 points
Published on 10/16/2026 at 13:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSChip rebound and policy dates
- Nikkei 225 closed at 65,324 points on October 16, up 898 points or 1.4 percent.
- AI and semiconductor shares recovered after Thursday's 4.9 percent selloff.
- Kioxia gained 3.8 percent, ahead of Tokyo Electron at 2.6 percent.
- The Bank of Japan meets October 29-30 for fresh growth and inflation forecasts.
The Nikkei 225 closed at 65,324 points on October 16, up 898 points or 1.4 percent. Technology shares recovered after Thursday's 4.9 percent selloff, while investors reassessed the outlook for artificial intelligence spending.
Kioxia Holdings rose 3.8 percent, while Tokyo Electron gained 2.6 percent and SoftBank Group advanced 1.9 percent, Yahoo Finance reported.
Why did the Nikkei 225 rebound?
The rebound followed heavy losses in AI-linked shares and semiconductor equipment makers on October 15. Trading Economics linked the recovery to easing technology selling and renewed debate over AI investment.
Federal Reserve Chair Kevin Warsh also said AI could bring substantial benefits to the global economy during remarks at the IMF and World Bank meetings. That message supported a broader recovery in technology shares, Yahoo Finance reported.
Nikkei 225 recovers after six-session slide
The index rebounded for the first time in seven sessions and gained 898.34 points from Thursday's close of 64,425.95. The Nikkei 225 still fell 5.4 percent for the week, its steepest weekly decline since July, Kabutan reported.
Reuters put the closing level at 65,324.29 points and the daily gain at 1.39 percent. The broader Topix gained 1.67 percent to 4,066.00, Reuters via Les Echos reported.
AI-linked stocks lead the recovery
Buying returned to chip and AI-related shares after the sector drove Thursday's decline. Kioxia, Tokyo Electron and SoftBank Group were among the named leaders, while the Nikkei's rebound remained tied to expectations for AI demand and concerns about the financing of new infrastructure.
The market's weekly decline shows that Friday's advance did not erase the recent technology selloff. The rebound followed a 3,318-point fall on October 15, when concerns about AI investment sustainability pressured semiconductor shares, KLSE Screener reported.
What comes next for the Nikkei 225
The next major Japanese policy date is the Bank of Japan meeting on October 29-30. The board is scheduled to publish fresh growth and inflation forecasts, which markets will assess for clues about the timing of the next rate increase, KabuFacts reports.
