Japan's Nikkei rises as AI-related shares track US semiconductor rally

Business Recorder reported that Japan's Nikkei share average rose 1.3% to 66,342.71 early on Wednesday, helped by artificial intelligence-linked stocks that followed gains in US chip shares. The broader Topix index added 0.6% to 4,067.98. Cheaper crude overnight also helped shares of companies sensitive to the economy.

American equities ended marginally lower on Tuesday while bond yields kept rising before inflation and employment figures came out, but the Philadelphia Semiconductor Index still gained 1.3%. In Tokyo, SoftBank Group surged 6.23%, while Tokyo Electron rose 3.13% and Advantest 1.03%. Fujikura, a fibre-optic cable maker, added 6.21%.

Taiyo Yuden, a multi-layer ceramic capacitor maker whose parts regulate power in AI servers, gained 3.8% after announcing a business alliance with TDK. TDK itself edged up 1.3%, while Murata Manufacturing fell 2.7%. Banks also firmed, with Mizuho up 2.35% and Sumitomo Mitsui Financial Group 1.3% higher, lifting the bank sub-index 1.38%. Of more than 1,500 stocks on the Tokyo Stock Exchange prime market, 44% advanced, 51% declined and 3% were flat.