Japan’s Nikkei jumps over 1% as AI optimism lifts chip stocks; exports rise 16.7%

Japan’s Nikkei share average rallied on Wednesday, gaining more than 1.5% in early trading, as renewed optimism over artificial intelligence (AI) demand boosted investor sentiment following gains on Wall Street.

The benchmark Nikkei 225 climbed 1.56% to 65,074.56, while the broader Topix index advanced 1.03% to 4,050.65.

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According to Reuters, sentiment around AI-related stocks improved after US equities rose overnight and SpaceX reported its first profit as a public company. Adding to the optimism, ByteDance, Alibaba and Tencent were reported to have ordered more than 3 million Nvidia RTX PRO 5500 graphics processing units worth over $35 billion.

Japan’s export data also supported the market, highlighting resilient global demand for semiconductors and AI-related products. Exports rose 16.7% year-on-year in September, government data showed on Wednesday, although the increase fell short of market expectations.

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Market breadth remained positive, with 140 stocks advancing in the Nikkei 225 against 85 decliners.

Mitsui Kinzoku led the gainers, rising 7.10%, followed by Ibiden, which advanced 5.92%, and JX Advanced Metals, which gained 5.22%.

On the other hand, Toho was the biggest percentage loser, falling 3.41%. Shift declined 2.88%, while Aeon dropped 2.46%.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)