Sep 24, 2025FinanceAsiaThe Business Times

Japan's Nikkei Closes at Record High as AI Rally Overcomes Early Losses

Vibrant Tokyo skyline with stock market charts and AI digital overlays, symbolizing financial growth in Asia

In the bustling heart of Tokyo, Japan's stock market delivered a thrilling turnaround on Wednesday, September 24, 2025. The Nikkei 225 index, a bellwether for the nation's economy, clawed its way back from an early morning slump to close at an unprecedented record high. What sparked this resilience? A wave of investor enthusiasm for artificial intelligence, which propelled key tech stocks and overshadowed initial jitters from global economic signals.

The index edged up 0.3% to finish at 45,624—a milestone that underscores Japan's evolving role in the global tech landscape. Early in the session, the market dipped amid concerns over fluctuating U.S. interest rates and supply chain hiccups in semiconductors. But as trading progressed, eyes turned to AI-driven gains. Companies like SoftBank, with its heavy bets on AI ventures, saw shares surge, pulling the broader index higher. This rally mirrors a broader trend across Asia, where nations are pouring resources into AI to fuel innovation and economic recovery.

To put this in perspective, the Nikkei's journey to this peak hasn't been smooth. Over the past year, it has navigated geopolitical tensions, yen volatility, and the ripple effects of international trade policies. Yet, the infusion of AI investments—bolstered by partnerships with U.S. giants like Nvidia and OpenAI—has provided a much-needed boost. Analysts note that Japan's government is ramping up subsidies for AI research, aiming to position the country as a leader in ethical AI development. This isn't just about numbers on a screen; it's about real jobs, technological advancements, and a brighter economic horizon for millions.

Looking ahead, market watchers are cautiously optimistic. If AI momentum sustains, the Nikkei could push even higher, potentially drawing more foreign capital into Asian markets. However, lingering risks like inflation and regulatory hurdles in the EU could test this upward trajectory. For now, though, investors in Tokyo can breathe a sigh of relief—and perhaps celebrate with a nod to the power of emerging tech.

This article is a rewritten summary based on original reporting. For the full details, read the original from The Business Times.