Japan's Nikkei hits three-month high on AI stock rally
Japan's Nikkei share average rose more than 2 per cent to a three-month high on Monday, boosted by AI-related stocks following Wall Street gains. Chip-related Advantest and Tokyo Electron led the surge, while the broader Topix also rose. A strategist said the AI rally will continue but markets will
Japan's Nikkei share average rose more than 2 per cent to a three-month high on Monday, boosted by AI-related stocks, following gains on Wall Street at the end of last week.
The Nikkei rose 2.53 per cent to 70,037.61, its highest level since early July, by the midday break. The broader Topix rose 1.16 per cent to 4,138.57.
"Investors scooped up AI-related stocks, but the market sentiment is muted compared with earlier this year when the Nikkei hit a record high," said Mamoru Shimode, chief strategist at Resona Asset Management. "The AI rally will continue, but the markets will be more selective."
US stocks advanced on Friday after weaker-than-expected jobs data dampened expectations for a rate hike from the Federal Reserve at its policy meeting this month.
In Japan on Monday, chip-related Advantest and Tokyo Electron rose 4.5 per cent and 5.7 per cent, respectively, to provide the biggest boosts to the Nikkei. Technology investor SoftBank Group rose 3.68 per cent.
Memory maker Kioxia edged up 0.49 per cent. The shares trade nearly 50 per cent below the record high set in mid-June. "Investors probably tried to buy Kioxia shares on the rise, but at the same time others who have losses in the shares sold stocks on a rally, which is why their gains are limited," Shimode said.
Bank shares rose, with Mitsubishi UFJ Financial Group and Mizuho Financial Group rising 0.99 per cent and 1.86 per cent, respectively. The Topix growth share index rose 1.46 per cent, while the value share index gained 0.89 per cent. Of more than 1,500 stocks on the Tokyo Stock Exchange's prime market, 53 per cent rose, 42 per cent fell, and 3 per cent traded flat.