Japan's Nikkei jumps as tech results revive AI optimism
EWJ•Japan's Nikkei 225 rose 1.26% to 64,067.10 at Wednesday's midday break as technology results revived AI optimism, while the Topix slipped 0.02% to 3,996.53.
1. Japanese shares diverge
The Nikkei 225 advanced 1.26% to 64,067.10 at the midday break on Wednesday, while the broader Topix slipped 0.02% to 3,996.53. The Nikkei had 86 advancers and 138 decliners.
2. AI spending and profits
Technology results renewed optimism in AI-related shares. Nomura Securities equities strategist Maki Sawada said AI-related stocks have tended to fall on news of massive spending and fundraising, while signs of rising profitability have supported gains. South Korean chipmaker SK Hynix announced about $75 billion in shareholder returns after quarterly profit rose more than seven-fold.
3. Investors watch upcoming events
Investors looked ahead to semiconductor-related earnings and the Federal Reserve's rate decision later Wednesday. Markets priced in a hold and a high probability of a December hike.
