Japan’s Nikkei rises as trading resumes after holiday, AI-related stocks shine

TOKYO: Japan’s Nikkei share average rose on Tuesday as trading resumed after a long holiday weekend, with AI-related stocks rallying on expectation of further investment in AI infrastructure after a report of a possible Nvidia-OpenAI deal.

The Nikkei rose 0.76% to 57,256.55 by the midday break after closing 1.1% lower on Friday.

The broader Topix edged up 0.1% to 3,812.33.

Markets were closed on Monday for a holiday. “Although it is still a speculation, investors reacted to the news about Nvidia and OpenAI.

Expectations for growth in AI infrastructure grew,“ said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.

Nvidia is close to finalising a $30 billion investment in OpenAI as the chipmaker moves to take a stake in one of its largest customers, Reuters reported last week.

Fibre-optic cable makers jumped, with Furukawa Electric surging 13.16% to become the top percentage gainer on the Nikkei.

Sumitomo Electric and Fujikura rose 9% and 7.55%, respectively.

Chip-testing equipment maker Advantest rose 3.95%.

Bank shares fell on caution over the potential impact of Blue Owl Capital after the private capital firm said last week it would sell assets across three funds, return the proceeds to investors and pay down debt.

“If bank shares were sold off on the news about Blue Owl, it would be a good opportunity to buy,” said Shinkin Asset’s Fujiwara, as risks on Japanese banks are limited because their loan to deposit ratio has been kept low.

Mitsubishi UFJ Financial Group fell 1.75%, Mizuho Financial Group lost 3.29% and Sumitomo Mitsui Financial Group fell 2.77%.

The bank share index lost 2.5% to become the worst performer among the Tokyo Stock Exchange’s 33 industry sub-indexes. Software-related shares fell, tracking losses in their US peers on AI disruption fears.

Fujitsu tanked 8.95%.

NEC and Nomura Research lost 7.12% and 7.91%, respectively.