Japan's Nikkei hits 3-month high as AI shares rally
EWJ•Japan's Nikkei rose 2.53% to 70,037.61 by Monday's midday break, its highest level since early July, while the broader Topix gained 1.16% to 4,138.57. Chip-related Advantest and Tokyo Electron rose 4.5% and 5.7%, respectively.
1. AI shares lead gains
Japan's Nikkei share average climbed more than 2% on Monday, boosted by AI-related stocks after Wall Street advanced late last week. Strategist Mamoru Shimode said investors bought AI-related shares, though market sentiment was more muted than earlier in the year when the Nikkei reached a record high.
2. Chip stocks rise
Advantest rose 4.5% and Tokyo Electron gained 5.7%, providing the biggest boosts to the Nikkei. SoftBank Group rose 3.68%, while Kioxia edged up 0.49%; Kioxia shares remained nearly 50% below their record high set in mid-June.
3. Broader market moves
The Topix rose 1.16% to 4,138.57. Bank shares also gained, with Mitsubishi UFJ Financial Group up 0.99% and Mizuho Financial Group up 1.86%; 53% of stocks on the Tokyo Stock Exchange's prime market rose, 42% fell and 3% were flat.
