Nikkei 225 Rebounds Over 2%, Hits Highest Since Early August

Tokyo's key Nikkei index rose by over two percent following a long weekend break, driven by a surge in technology-related shares. The benchmark Nikkei 225 index gained 2.32 percent, or 813.99 points, reaching 35,838.99, while the broader Topix index climbed 1.84 percent to 2,528.92. The gains were influenced by the performance of tech shares on Wall Street, with companies like Nvidia boosting the Nasdaq Composite Index by 0.21 percent.

The rally in Tokyo came despite a volatile week for global markets, where the Nasdaq ended down 2.5 percent and 17 percent off its early July peak. Investors are adopting a cautious stance as they await key US economic indicators, including inflation data expected later in the week. The yen remained stable at around 147 per dollar, providing additional support for Japanese exporters such as automakers and tech firms. Japanese financial markets had been closed on Monday for a national holiday, contributing to the significant rise observed upon reopening.