Japan's Nikkei hits six-week high as Micron forecast lifts chip stocks

Japan's Nikkei 225 closed 2.28% higher at 68,276.92, its strongest finish since August 18, according to Business Recorder. The gains came from a small group of heavily weighted chip-related companies after Micron Technology posted strong earnings that boosted hopes for spending on artificial intelligence. The broader Topix managed only a marginal rise of 0.03%, ending at 4,109.4.

Micron had forecast quarterly revenue above expectations on Wednesday and said customers raised their commitments under long-term supply agreements to $32 billion. That, it argued, showed demand for AI memory chips remained firm. Advantest rose 7%, Murata Manufacturing gained 6% and Kioxia climbed 4%, though market breadth was weak with 157 decliners against 68 gainers.

Nomura Securities equity strategist Wataru Akiyama cautioned investors not to overstate the AI rally, noting that gains could stem from one-off earnings news. Tokio Marine Holdings led the decliners with a 4.11% drop, followed by T&D Holdings at 3.18% and Fukuoka Financial Group at 3.02%. Separately, a Bank of Japan policy meeting summary showed some officials wanted faster rate hikes, adding to expectations of more tightening.