Japan's Nikkei gains as Meta's AI gadget launch lifts CPU-related stocks

TOKYO: Japan’s Nikkei average rose on Thursday in a holiday-shortened week as CPU-related shares jumped after Meta CEO Mark Zuckerberg unveiled a small handheld gadget called Meta Charm, fuelling demand for key computer components.

The Nikkei was up 1.33% at 65,883.41 by the midday break.

The broader Topix edged up 0.12% to 4,096.01.

Markets were closed until Wednesday due to public holidays. Shares of Ibiden, a component maker of CPUs (central processing units), jumped 15.47% after Meta Platforms unveiled Meta Charm, a device designed to use its new Muse AI assistant.

The announcement lifted shares of other CPU-related companies, said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

Socionext, Meiko Electronic and Ushio Inc jumped more than 10% each, making them, along with Ibiden, four of the top five gainers on the Tokyo Stock Exchange’s prime market.

Chip-testing equipment maker Advantest rose 4.09%, providing the biggest boost to the Nikkei.

SoftBank Group edged up 0.52%.

“In recent sessions, chip-related shares tend to withstand rising yields,” said Shimada.

Japan’s 10-year government bond yield rose to 3.055% on Thursday, its highest point since August 1996, following a selloff of US Treasuries.

The market also weighed inflation worries as the yen lost ground to the dollar overnight.

Bank shares fell, weighing on the Topix.

Shares of Mitsubishi UFJ Financial Group fell 1.08%, Sumitomo Mitsui Financial Group lost 1.6% and Mizuho Financial Group slipped 2.02%.

TSE’s value share index edged 0.2% lower, while the growth stock index rose 0.48%.

Of more than 1,500 stocks trading on the TSE’s prime market, 53% rose, 43% declined and 3% were flat.