Japan's Nikkei jumps over 3% on AI-stock rally, strong corporate outlook

Bucking the trend, Uniqlo-brand owner Fast Retailing 9983.T fell 1.82% to weigh on the Nikkei the most.

Air-conditioning maker Daikin Industries 6367.T fell 8% to post the biggest percentage loss on the Nikkei.

Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 67% rose, 29% fell and 3% traded flat.

Murata Manufacturing 6981.T, a leading maker of multi-layer ceramic capacitors (MLCCs) used to regulate power in AI servers, jumped 8.33% after raising its annual net profit forecast.

"Compared with the past, more companies raised their annual outlook in the first quarter, which means they had made modest forecasts due to the impact of the Middle East war," said Daisuke Hashizume, a senior strategist at Daiwa Securities.

"A series of upward revisions of forecasts of Japanese firms is a positive factor for overall equities," he said.

Fanuc 6954.T rose 3.67% after the robot maker raised its annual net profit forecast.

Bank shares rose, with Mitsubishi UFJ Financial Group 8306.T and Mizuho Financial Group 8411.T up more than 1% each.

TOKYO, Aug. 5 (Reuters) - Japan's Nikkei share average rose more than 3% on Wednesday as AI-related stocks jumped to track their U.S. peers, and investors scooped up stocks with a strong outlook.

The Nikkei .N225 was up 3.16% to 65,979.02 as of 0101 GMT, while the broader Topix .TOPX rose 1.52% to 4,022.18.

The S&P 500 and the Dow closed at record highs on Tuesday, powered by the latest batch of earnings from AI-related companies such as Caterpillar and Palantir that assuaged demand concerns, while crude prices and Treasury yields dropped on hopes for a deal in the Iran war. .N