SoftBank Group extended a powerful AI-driven rally on Wednesday, rising 5% to ¥6,884, even as the Japanese yen strengthened toward its highest level in nearly seven months. The stock has now climbed almost 38% from ¥5,001 on September 3, with daily gains of 11.8% on September 4, 11.2% on September 7 and 5.5% on September 8. The move is unusual because SoftBank’s valuation is tied to overseas technology assets including Arm and OpenAI, and a stronger yen normally reduces the local-currency value of those holdings.
SoftBank’s official figures showed a net asset value of ¥72.3 trillion as of June 30, with Arm accounting for ¥49.91 trillion of adjusted equity value. Enthusiasm around OpenAI’s GPT-6 Astra launch and gains in Arm have helped investors look through the currency drag. The yen traded near ¥153.3 per dollar, its strongest since February, with markets pricing a 98% probability of a Bank of Japan rate increase this month, up from about 65% previously, and another move by December nearly fully priced. LPL Financial strategist Adam Turnquist warned that a break below ¥152 could accelerate the yen rally and force more short covering.
Elsewhere in Asia, South Korea’s KOSPI rose 1.67% to 7,070.94, reclaiming the 7,000 level, as Samsung Electronics gained 1.48% and SK Hynix jumped 4.85%. Japan’s Nikkei 225 recovered about 0.35% to 65,495.23, while Taiwan’s TAIEX added 0.6% and China’s CSI 300 rose 0.2%. The Philadelphia Semiconductor Index gained 1.3% overnight, supporting chip shares. Hanwha Ocean rose 2.32% after being named preferred bidder for a Royal Thai Navy frigate project worth about $500 million. Mirae Asset Securities research head Park Yeon-joo said the KOSPI’s ability to stay above 7,000 depends on the durability of AI investment and earnings growth at major chipmakers.
However, the macro backdrop is becoming more cautious. Brent crude climbed toward $100 a barrel after further attacks on Saudi energy infrastructure and renewed fighting involving Iran and US forces, with WTI near $94.5. Higher oil prices can complicate inflation for import-dependent Japan and South Korea. MUFG strategist Michael Wan noted that the yen’s move has so far been driven by domestic Japanese factors and that emerging markets and carry trades have remained resilient, but the risk of disorderly carry-trade unwinding remains a key concern for global high-beta assets, including digital assets.
