Japanese shares end higher on chip gains, earnings outlook

"What is different from previous rallies of Japanese stocks is that investors are buying both value and growth stocks. That is supported by a strong corporate outlook," Shimada said.

Toppan Holdings 7911.T jumped 10.78% to become the biggest percentage gainer on the Nikkei, after the printing and packaging firm said its first-quarter net profit more than doubled from a year earlier.

Banks, icons for value shares, rose, with Mitsubishi UFJ Financial Group 8306.T and Mizuho Financial Group 8411.T up nearly 3% each.

Of all the companies on the Topix, whose fiscal year ends in March, about 18% raised their annual recurring profit forecasts in the first quarter, compared with 2% which downgraded their forecasts, according to Shimada.

Of the more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 64% rose, 32% fell and 3% traded flat.

TOKYO, Aug. 13 (Reuters) - Japanese shares closed higher on Thursday, with the Topix hitting a record high, as chip-related stocks tracked U.S. peers higher and a robust earnings outlook for local firms lifted sentiment.

The Nikkei .N225 rose 1.16% to 68,308.59, while the broader Topix .TOPX rose 0.86% to a record high close of 4,176.04, extending gains to a seventh straight session.

The S&P 500 and the Nasdaq ended higher on Wednesday, lifted by upbeat quarterly results from CoreWeave CRWV.O and other AI infrastructure firms, while mild inflation data reinforced bets that the U.S. Federal Reserve will hold interest rates steady in September. The PHLX Semiconductor Index .SOX advanced about 2.5%.