Tokyo's Nikkei index has been battered by a stronger yen
Nikkei Jumps 2.2% as Japanese Stocks Bounce From Bear Market Plunge, Though SoftBank Slips on ABB Deal Snag AFP

TOKYO — Japanese stocks rebounded on Monday, recovering part of last week's steep losses as investors returned to technology shares.

The Nikkei 225 rose 1,259.78 points, or 2.19%, to 58,694.55 in late afternoon trading.

Asian stocks and U.S. futures advanced as artificial intelligence shares recovered some ground lost during last week's rout. On Friday, the Nikkei 225 fell 5.7%.

Bear market

The Nikkei slipped into a bear market after falling 21% from its peak.

SoftBank lags

Not every major stock joined the rally. SoftBank Group shares fell 2.9% as the company worked to salvage a $5.4 billion robotics deal with Swiss engineering firm ABB after Chinese regulators rejected the transaction.

SoftBank, seen as the Nikkei's AI proxy, is already down about 60% from its high. It releases financial results on Wednesday.

Week ahead

Investors are also watching earnings from banks Mizuho and Mitsubishi UFJ.