Nikkei rally driven by tech sentiment

Despite the yen weakening to multi-decade lows against the dollar, the Nikkei’s strong rally has been driven more by positive sentiment around global technology. The stock market has risen by more than 60%, and the currency’s weakness cannot solely explain that performance. Semiconductor-linked companies and AI beneficiaries have led to gains in the Nikkei, with many Japanese firms connected to global tech supply chains. Investors are seeking to gain from the same capex-driven tech theme, too, benefitting Japan. Structural changes within the country, which is transitioning out of decades of...