Japan's Nikkei hits 3-month high as AI shares rally

Business Recorder reported that Japan's Nikkei share average gained over 2% on Monday, reaching its strongest point in three months as artificial intelligence themed names drew buyers. By the midday break the index had added 2.53% to 70,037.61, its loftiest level since early July. The broader Topix also moved higher, climbing 1.16% to 4,138.57.

Strategists quoted in the report said the market mood was more cautious than earlier this year, when the Nikkei had set a record high. Mamoru Shimode of Resona Asset Management expected the AI rally to continue, but with investors becoming more selective. The gains followed a Friday rise on Wall Street, where softer than forecast US employment figures reduced bets on a Federal Reserve rate hike at its meeting this month.

Chip-related Advantest and Tokyo Electron were the biggest contributors, rising 4.5% and 5.7% respectively. SoftBank Group added 3.68%, while Kioxia, a memory chipmaker, gained 0.49% though its shares remain nearly 50% under the mid-June peak. Among banks, Mitsubishi UFJ Financial Group and Mizuho Financial Group advanced 0.99% and 1.86%.