Shares of SoftBank Group jumped more than 18% during Thursday's trading on the Tokyo Stock Exchange, closing at 6,424 yen, marking one of its strongest sessions in years, as investors rushed into technology and artificial intelligence stocks following growing expectations of an imminent agreement to end the trade war between the United States and Iran.
These strong gains came after rising optimism in the markets regarding the diplomatic path between Washington and Tehran, especially with anticipation of the official Iranian response to the American proposal to end the war, amid Pakistani mediation aimed at consolidating the ceasefire and turning it into a permanent agreement.
Japanese technology stocks have clearly benefited from improved risk appetite, as investors believe that any geopolitical easing could lead to lower oil prices and reduced global inflationary pressures, which supports growth companies and the artificial intelligence sector, which has been under strong pressure in recent weeks due to high yields and inflation fears.
SoftBank Group is one of the world’s leading investors in the technology and artificial intelligence sector through its Vision Fund, making the stock highly sensitive to shifts in global market sentiment and growth expectations in the technology sector.
Analysts believe the renewed momentum in AI stocks reflects growing bets that any political breakthrough in the Middle East could give central banks more room to ease monetary tightening, supporting the valuations of high-growth technology companies.
