Japanese stocks are poised to join the global AI-led rally when markets reopen Thursday after the Silver Week holiday. Nikkei 225 futures in Osaka are already up 2.5% from Friday's close, signaling strong optimism. The surge follows advances from Meta Platforms Inc.'s new AI agent and Alibaba Group Holding Ltd.'s unveiling of China's most powerful AI chip, reviving sector enthusiasm. Chip-equipment makers Tokyo Electron Ltd. and Advantest Corp., along with Ibiden Co. and Kioxia Holdings Corp., are expected to lead gains.

The yen continues to weaken, trading around 157.88 per dollar, marking a fourth straight day of losses — its longest losing streak since late August. While a softer yen boosts exporters, it keeps currency intervention risk elevated after the Bank of Japan checked exchange-rate levels last week. The BOJ raised its benchmark rate Friday but offered limited guidance, disappointing yen traders.

Bond traders face mixed signals: falling oil prices below $100 per barrel and lower Treasury yields could support Japanese government bonds, but uncertainty over the BOJ's tightening path weighs on short-term debt. Analyst Hebe Chen of Vantage Global Prime notes near-term asset performance will largely depend on yen moves, while Hu You of i Fast Financial sees a semiconductor- and AI-led broad market lift.