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

TOKYO: Japan’s Nikkei share average rose on Wednesday, with AI-related stocks tracking gains in US semiconductor shares, while lower oil prices overnight lifted economy-sensitive stocks.

The Nikkei was up 1.3% at 66,342.71, as of 0204 GMT.

The broader Topix gained 0.6% to 4,067.98.

US stocks ended slightly lower on Tuesday as Treasury yields continued to climb ahead of inflation and labour market data, although the Philadelphia Semiconductor Index advanced 1.3%.

“Not just technology stocks, but also shares sensitive to the economy rose in the current session,” said Daisuke Hashizume, senior strategist at Daiwa Securities.

“But with more stocks falling in the overall market, investors were selective on stocks,” he said.

Technology investor SoftBank Group rose 6.23%, while chip-related shares Tokyo Electron and Advantest gained 3.13% and 1.03%, respectively.

Fibre-optic cable maker Fujikura climbed 6.21%.

Taiyo Yuden, a manufacturer of multi-layer ceramic capacitors to regulate power in AI servers, gained 3.8% after the company said it would form a business alliance with electronic parts maker TDK. Shares of TDK climbed 1.3%.

Peer Murata Manufacturing fell 2.7%.

Banking shares rose, with Sumitomo Mitsui Financial Group and Mizuho Financial Group up 1.3% and 2.35%, respectively. The bank sub-index rose 1.38%.

Shippers rose 1.33%, with Mitsui OSK Lines advancing roughly 2%.

Of more than 1,500 stocks trading on the Tokyo Stock Exchange’s prime market, 44% rose, 51% fell and 3% traded flat.