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Hitachi Leads Nikkei on AI Partnership News

Japanese conglomerate Hitachi’s shares soared more than 9% on Friday, propelling the company to the top of the Nikkei 225. The sharp rally followed Hitachi’s late Thursday announcement of a partnership with OpenAI to build artificial intelligence infrastructure and global data centers—a move viewed by investors as a bold bet on the future of AI-driven technology.

The news boosted overall sentiment in Tokyo markets. The Nikkei 225 gained 1.57%, while the Topix index climbed 1.33%, extending gains despite mixed signals from broader Asia-Pacific markets.

Japan’s Economic Data Shows Mixed Signals

Economic indicators released Friday painted a more complex picture. Japan’s unemployment rate rose to 2.6% in August, slightly higher than both the 2.4% forecast by economists and the 2.3% recorded in July.

Meanwhile, the S&P Global Japan services PMI rose to 53.3 in September from 53.1 in August, suggesting stronger domestic demand, even as new export business weakened.

“While services companies recorded another month of solid growth, manufacturers reported a steeper decline in output amid weak sales. As a result, the private sector as a whole expanded at the slowest rate since May,” said Annabel Fiddes, economics associate director at S&P Global Market Intelligence.

Asia-Pacific Market Performance

Elsewhere in the region, trading was uneven. Australia’s S&P/ASX 200 rose 0.27%, supported by gains in mining stocks. Hong Kong’s Hang Seng Index slipped 0.47%, while the Hang Seng Tech Index fell 1.21% as Chinese tech names faced renewed selling pressure.

In India, the Nifty 50 edged down 0.16%, and the Sensex declined 0.36%, reflecting profit-taking after recent highs.

Markets in China and South Korea remained closed for holidays, limiting regional liquidity and cross-border flows.

Wall Street Rally Lifts Sentiment

The AI-driven rally in Japan came on the heels of another positive session on Wall Street. U.S. stocks continued their upward march, with all three major indexes hitting fresh record highs despite concerns over the ongoing government shutdown.

The S&P 500 added 0.06%, while the Dow Jones Industrial Average climbed 78 points (0.2%). The Nasdaq Composite rose 0.4%, led by a 0.9% surge in Nvidia, which reached an all-time high. Chipmakers Intel and AMD also gained more than 3% each, reflecting continued investor appetite for the semiconductor sector.

Although the U.S. Labor Department paused operations due to the shutdown—delaying the release of September’s nonfarm payrolls report—investors appeared largely unbothered, betting instead on tech growth and resilient corporate earnings.

The Bigger Picture

Hitachi’s partnership with OpenAI marks one of Japan’s most ambitious AI moves yet, positioning the conglomerate to compete in a global race for artificial intelligence dominance. With investor enthusiasm driving shares to a multi-year high, the deal highlights how AI partnerships are increasingly reshaping stock market narratives across the world.

For Japan, the move underscores its broader strategy of leaning into next-generation technology while navigating a delicate balance between strong domestic demand and weakening external trade.