Nikkei Reclaims 60,000 With 2.8% Jump as SoftBank Surges and Chip Stocks Extend Rebound From Friday's Rout

TOKYO — Japanese stocks rallied for a second straight day on Tuesday, pushing the Nikkei 225 back above the 60,000 mark as technology and chip stocks extended their recovery from last week's selloff.

The Nikkei 225 was up 1,641.40 points, or 2.79%, at 60,416.90 at 3:18 p.m. local time.

Back above 60,000

The benchmark reclaimed a key psychological level. The Nikkei climbed as much as 3.05% during the session to reclaim the 60,000 mark.

The broader Topix gained about 2.2%.

SoftBank and chip stocks surge

SoftBank led the rally. SoftBank surged more than 14%, with Advantest, Tokyo Electron and Kioxia also sharply higher.

SoftBank was in focus for another reason. SoftBank Group's investor calendar listed its second-quarter results for Nov. 10.

Chip equipment makers also advanced. Tokyo Electron surged 5.6% and Advantest gained 3.4% earlier in the session, according to The Associated Press.

Recovering from Friday

The two-day rally has erased much of last week's damage. The Nikkei fell nearly 6% on Friday on concerns that Democratic gains in the U.S. midterm elections could slow AI investment, and two sessions of strong gains have recouped most of those losses.

But investors remain cautious. A strategist said investors were reluctant to push the index above 61,000, suggesting conviction isn't fully back.

Global backdrop

The rally followed gains on Wall Street. Overnight, U.S. tech stocks rose and the Philadelphia Semiconductor Index surged 6.85%.

Lower Treasury yields over the past month have helped ease borrowing costs and supported stock prices.

Asian markets broadly advanced. Hong Kong's Hang Seng rose 0.4% to 24,535.74, and the Shanghai Composite edged 0.4% higher to 3,673.54.

What's next

Investors will focus on SoftBank's results and U.S. inflation data later this week, which could shape global interest rate expectations and the outlook for technology stocks.