Japan's Nikkei rallies as AI exuberance overrides Iran war concerns

According to Business Recorder, Japan's Nikkei 225 ended Wednesday 0.43% higher at 65,549.88 after an early dip, as renewed enthusiasm for artificial intelligence outweighed worries about the Middle East conflict. The broader Topix added 0.24% to close at 4,059.87. A Reuters monthly poll showed manufacturers' confidence in September at its strongest since December 2021, supported by semiconductor and data-centre demand.

Verizon's multi-billion-dollar supply agreement with Corning for fibre used in AI data infrastructure lifted Japanese cable makers such as Fujikura, according to Maki Sawada, an equities strategist at Nomura Securities. In the United States, the Philadelphia SE Semiconductor Index still gained 1.3% despite overnight pressure from Iran war concerns and rising oil prices. Japanese stocks also faced a firmer yen, which hovered near a seven-month high as traders anticipated quicker Bank of Japan rate increases, with a decision possible at next week's meeting.

Across the Nikkei 225, 109 stocks advanced while 116 declined. Furukawa Electric led the gainers with a 13.20% rise, followed by Fujikura at 8.75% and Lasertec at 6.56%. On the downside, Kyowa Kirin fell 5.12%, Sumitomo Pharma slipped 5.02% and Nikon dropped 3.63%.