Japan's Stock Market Poised to Catch AI Rally as Yen Weakness Stokes Intervention Concerns

Japanese equities look set to join a global artificial-intelligence-driven market surge, with the benchmark Nikkei 225 index expected to advance sharply when trading resumes Thursday after a holiday break, though the yen's sustained weakness poses fresh challenges for policymakers watching currency markets. Nikkei 225 futures traded in Osaka were quoted about 2.5% higher than Friday's close, signaling broad-based optimism as investors pivot toward technology and semiconductor stocks riding international AI momentum. Japan's stock market has already climbed nearly 33% in 2026, driven by Japanese companies posting their strongest earnings beat in five years—a performance that has begun attracting growth-focused funds alongside traditional value investors seeking exposure to the country's transformation.