Nikkei rises as Advantest's higher profit forecast lifts chip stocks
QQQ•Banks and other value shares weaken
In Japan, Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T lost 3.18% and 2.15%, respectively.
"This is a typical trend in recent sessions where AI-related shares are strong, value shares such as banks are sold off," said Shimada.
Toyota Motor 7203.T fell 1.71%. System integrator Nomura Research Institute 4307.T lost 6% to become the biggest percentage loser on the Nikkei.
Of the more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 35% rose, 62% fell and 2% traded flat.
Nikkei rises on Advantest-led chip rally
Japan's Nikkei share average rose on Thursday as Advantest's higher profit forecast lifted chip-related stocks, while banks pulled down the broader Topix.
The Nikkei .N225 rose 1.28% to 62,218.41 by the midday break, while the Topix .TOPX fell 0.29% to 3,962.68.
Advantest 6857.T jumped 11.49% after raising its annual operating profit forecast by 35% on Wednesday as AI spending drives demand for its chip-testing equipment.
"Thanks to Advantest's tremendous outlook, shares in other chip-related stocks rose," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
Chip-making equipment maker Tokyo Electron 8035.T rose 5.32%. Memory maker Kioxia 285A.T jumped 9.41%.
AI spending concerns ease as U.S. tech futures rebound
Shimada said global concerns over heavy spending on AI infrastructure outpacing revenue growth eased after Microsoft MSFT.O signalled its massive spending bets were paying off.
Nasdaq NQc1 and S&P EScv1 futures were up 1% and 0.5%, respectively, in Asian trading, signalling a potential rebound of U.S. technology stocks later in the day, said Shimada.
