Japan's Nikkei rebounds from bear market as tech stocks recover

By Rocky Swift

TOKYO, Nov 9 (Reuters) - Japan's Nikkei share average rebounded on Monday after a tech-led selloff last week pushed the benchmark index into bear market territory.

The benchmark Nikkei 225 .N225 advanced 2.33% to close at 58,775.50, recouping part of Friday's 6% slump that left the index more than 20% below its record high reached in June. The broader Topix .TOPX climbed 2.97% to 3,818.16.

US technology shares recovered on Friday, with Nvidia NVDA.O and Tesla TSLA.O rebounding after steep losses earlier in the week.

The tech-heavy Nasdaq .IXIC rose 1.1%, while the S&P 500 .SPX gained 0.3%, as concerns eased that Democratic election victories could lead to tighter oversight of AI and weaker data-centre spending.

"Wariness about US policy moves such as AI regulation runs deep, and once the initial buying has run its course, gains could struggle to extend," Takuma Ikemoto, a market analyst at Tokai Tokyo Intelligence Laboratory, said in a note.

US President Donald Trump said on Sunday he was highly unlikely to order fresh attacks on Iran as long as talks progress, with Qatar mediating, even as both sides reported vessels hit in or near the Strait of Hormuz. The eight-month conflict has disrupted energy flows through the region.

Market breadth was overwhelmingly positive on Monday, with 208 of the Nikkei's 225 components advancing and 17 declining.

Consulting services provider Baycurrent 6532.T was the Nikkei's top percentage gainer, rising 8.8% to a record closing high. Shimizu 1803.T followed with a gain of 7.7%, while Mitsubishi Electric 6503.T advanced 7.3%.

The biggest laggard was Japan Tobacco 2914.T, which plunged by its daily trading limit for a second session after Russia seized its assets in the country. Its shares sank 15.95% to mark the lowest close since October 2025.

It was followed by Mitsui Chemicals 4183.T, which fell 8.48% to its lowest close since June 2025, and Tokyu Fudosan Holdings 3289.T, which sank 4.45%.