Global Market | Nikkei jumps nearly 2% as AI, chip stocks rally

Japan's Nikkei share average climbed nearly 2% on Wednesday, led by chip and artificial intelligence-related stocks, as concerns over the economic impact of surging oil prices subsided.

The Nikkei was up 1.91% at 54,726.58, as of 0140 GMT, while the broader Topix rose 1.66% to 3,687.35.

"The equity market has been closely ‌linked with ⁠oil ⁠prices. Today, the market eased excessive worries about the outlook of oil prices and scooped up heavyweight technology stocks," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.


The Nikkei's gains were further supported by an overnight rally on Wall Street, Yasuda said.

Shares of Delta Air Lines and American Airlines Group, both sensitive to oil price movements, rebounded after recent weeks of ⁠losses.

Crude oil ‌prices remain close to $100 a barrel amid worries about extended supply disruptions caused by the closure of the Strait of ⁠Hormuz shipping route.

Oil prices slightly fell in Asian trade after sources citing American Petroleum Institute figures showed an increase in U.S. crude inventories.

In Japan, chip-testing equipment maker Advantest jumped 4.95% and AI-technology investor SoftBank Group rose 5%. Fibre optic cable maker Fujikura rose 3.6%.

Shares of Mitsui OSK Lines jumped 10% after Reuters reported that Elliott Investment Management has taken a "significant" stake in the Japanese shipping ‌company.

Mitsubishi Materials jumped 14% after local media reported the maker copper products will participate in a project between Japan and the United States to develop rare earths, ⁠which will be agreed at a summit meeting of the two nations.

Japan Prime Minister Sanae Takaichi is due to meet U.S. President Donald Trump in Washington D.C. at a leaders' summit on March 19.

Tokyo Electric Power jumped 12.85 after local media reported dozens of investment funds and companies, including KKR and Bain Capital, are showing interest in investing in the utility.

Drugmaker Chugai Pharm fell 4%, making it the largest percentage loser in the Nikkei.