Tech Stocks Expected to Lead as Japanese Market Shows Resilience
Published: February 10, 2026
Market Outlook
Japan’s equity market is expected to open higher on February 10 and remain resilient as investors digest profit-taking following the recent sharp rally. Renewed buying in AI and semiconductor stocks is likely to keep technology shares in the lead, given their heavy index weight.
Overnight, U.S. markets finished mixed but supportive, with the Dow Jones Industrial Average edging higher and the Nasdaq Composite gaining 207 points. Earlier in the session, stocks came under pressure after media reports said Chinese authorities had advised banks to curb holdings of U.S. Treasuries, though losses were later reversed as buying intensified in AI- and chip-related stocks.
Chicago-listed Nikkei 225 futures closed at 57,200 yen, a 1,140-yen premium to Osaka futures. In the currency market, the yen remained weak at around 155.90 per dollar, providing support for exporter shares.
Technical and Fundamental Perspective
The Nikkei recently broke above its upper Bollinger Band (+3σ), prompting short-term position adjustments due to overheating concerns. Futures pricing, however, suggests the index may reclaim that level, raising expectations of a newly established upward trend.
If the index continues to trade above the weekly +2σ zone, attention may shift toward the upper trading range. Expectations of political stability under a long-term Takaiti-led administration could encourage overseas investors to increase index-linked allocations, favoring large-cap technology stocks.
Key Takeaway
While near-term consolidation cannot be ruled out after a strong rally, underlying demand remains firm. Investors may look for pullbacks to add exposure, with a focus on technology, AI, and semiconductor-related stocks, as well as policy-driven themes.
Disclaimer
This content is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instrument.
Risk Warning Regarding Trading
Trading on margin involves leverage and carries a high level of risk, and therefore may not be suitable for all investors. There is no guarantee of profit. Investors should not invest funds they cannot afford to lose and should fully understand the risks involved before trading.
