Tokyo stocks up on Middle East hopes but AI investment concerns trim gains

Tokyo stocks rose Monday morning, after crude oil prices retreated on expectations that tensions in the Middle East would ease, while gains were trimmed on concerns over the profitability of artificial intelligence investment.

The 225-issue Nikkei Stock Average rose 152.86 points, or 0.24 percent, from Friday to 64,764.01. The broader Topix index was up 38.71 points, or 0.97 percent, at 4,050.02.

The U.S. dollar weakened to the mid-163 yen level in Tokyo, after U.S. President Donald Trump reportedly ordered the military to halt its massive attacks on Iran.

At noon, the dollar fetched 163.57-58 yen compared with 163.82-92 yen in New York and 163.76-78 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.1406-1406 and 186.57-58 yen against $1.1364-1374 and 186.26-36 yen in New York and $1.1388-1391 and 186.51-55 yen in Tokyo late Friday afternoon.

Stocks opened higher, as inflation concerns eased after the West Texas Intermediate crude oil futures fell back below $90 per barrel, after the United States paused attacks on Iran.

However, the benchmark Nikkei index briefly turned negative as some technology shares declined, tracking losses in their U.S. counterparts after investors were spooked by massive AI investment increases announced by some major companies in their earnings reports.

© KYODO