Japanese and South Korean stocks rebound strongly! What is the market trading behind SoftBank's surge?

This rebound in Japanese and South Korean stocks appears on the surface to be driven by rising tech stocks, but in reality, it reflects a renewed recovery in global risk appetite.
Previously, tensions in the Middle East, rising oil prices, and growing expectations of interest rate hikes triggered a clear correction in the Japanese and South Korean markets. On September 2, the Nikkei 225 and KOSPI weakened in tandem, while SoftBank fell more than 6% at one point. But market sentiment quickly recovered afterward. On September 4, SoftBank closed up 11.78%, while the Nikkei 225 and KOSPI also rose 1.26% and 1.64%, respectively.
What does this indicate?
Capital has not completely exited tech assets; instead, positions are constantly shifting amid changes in interest rates, exchange rates, and geopolitical risks.
The yen is particularly worth watching. The yen has strengthened significantly recently, while market expectations for the Bank of Japan to raise interest rates further have increased. This could affect capital flows into Japanese stocks and carry trades.
Therefore, the current performance of Japanese and South Korean stocks is not simply a case of “rising means a bull market”; rather, multiple macro variables are being contested simultaneously.
SoftBank is an especially high-beta representative of this trend.
If expectations for Federal Reserve policy continue to ease and AI investment remains strong, tech stocks may continue to occupy center stage; otherwise, volatility will remain very high.
In one sentence: The market is back, but the direction still needs to be proven by the market itself.#日韩股市走强软银涨近6%