Nikkei Hits Record as AI Stocks Eclipse Japan’s Major Earthquake Advisory

The Japan Meteorological Agency issued a major earthquake advisory, saying the probability of a powerful quake within the next seven days had risen to about 10 times the normal level, and urged the public to review evacuation preparations. Such warnings typically weigh on tourism, transportation and insurance stocks. This time, however, markets focused on AI demand, Nvidia’s outlook and the Federal Reserve’s path toward rate cuts, leaving disaster risk short of becoming the dominant pricing factor.

The Nikkei 225 still closed 0.7% higher on the day of the advisory and set a record high, led by AI and semiconductor stocks. Investors were awaiting Nvidia’s latest outlook while betting that the Federal Reserve would begin cutting rates. Expectations of stronger technology-sector earnings and lower funding costs temporarily offset the earthquake risk premium for the coming week, creating a divergence between the warning and the stock market’s performance.