Japan's stock market rebounds strongly, with the Nikkei index rising by 4%. Nvidia's financial report boosts technology stocks.

The Japanese stock market rose, ending a four-day losing streak, driven by optimistic profit forecasts released by US chip giant NVIDIA, boosting AI-related stocks. The Nikkei 225 index rose 4% at one point, marking its largest increase since October 6; the TOPIX index also rose 2.6%. Tech stocks led the gains, with SoftBank Group soaring 9.1% at one point, and chip manufacturers Tokyo Electron and Ibiden Co Ltd. both rising by over 7%. Recommended reading: NVIDIA's strong outlook helps alleviate concerns about an AI bubble. "NVIDIA's performance is almost perfect, boosting investor sentiment," said Takashi Ito, senior strategist at Nomura Securities, adding that this financial report should drive a strong rebound in the Japanese stock market. However, the Japanese stock market still faces risks before Prime Minister Kan I assume office and announce an economic stimulus package. Japanese bond yields have risen to multi-year highs, and the yen has fallen to around 157 against the US dollar overnight.