Global Market: Japanese shares rise on AI stocks, dividend buying; Nikkei up 1.2%

Japanese shares advanced on Friday, supported by gains in artificial intelligence-related stocks and buying ahead of Monday's deadline for investors to qualify for mid-term dividend payouts, according to a report by Reuters.

The Nikkei 225 rose 1.23% to 66,318.14 by the midday break, while the broader Topix gained 1.19% to 4,123.73.

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Investors were buying stocks to secure dividend rights, while strong demand for chip-related shares provided additional support to the market, the report stated, citing Daiwa Securities strategist Daisuke Hashizume.

Banking stocks, which are generally among the higher dividend-paying sectors, led gains across the Tokyo Stock Exchange's 33 industry sub-indexes, rising 3.23%.

Mitsubishi UFJ Financial Group climbed 3.02%, making it the biggest contributor to the Topix's gains, while Sumitomo Mitsui Financial Group advanced 2.9%.

Chip-related stocks also strengthened, with Tokyo Electron rising 4.04% and Advantest gaining 2.45%. The two stocks were among the biggest contributors to the Nikkei's advance.

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Ibiden, a maker of components used in central processing units, jumped 5.6%, extending its rally after surging 14.57% in the previous session.

Solid economic data has helped support technology stocks, while expectations that the U.S. Federal Reserve and the Bank of Japan would continue to address inflation through higher interest rates have also boosted investor confidence in equities, Reuters reported, citing Hashizume.

SoftBank Falls After Oracle Slide

SoftBank Group fell 2.63%, tracking a decline in Oracle shares overnight.

Oracle's stock dropped around 3% after a report said the company had issued a force majeure notice to a unit of Blue Owl, the developer of a major data centre in New Mexico, citing potential delays in securing power for the project.

SoftBank is a co-investor alongside Oracle and OpenAI in the Stargate artificial intelligence infrastructure project.

Market breadth remained positive on the Tokyo Stock Exchange's Prime Market. Of more than 1,500 stocks traded, about 68% advanced, while 27% declined and 3% were unchanged.

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