Japan's Nikkei gains as Meta's AI gadget launch lifts CPU-related stocks
TOKYO: Japan's Nikkei average rose on Thursday in a holiday-shortened week as CPU-related shares jumped after Meta chief executive officer Mark Zuckerberg unveiled a small handheld gadget called Meta Charm, fuelling demand for key computer components.
Japan's Nikkei average surged on Thursday during a shortened holiday week, driven by a rise in CPU-related shares following Meta CEO Mark Zuckerberg's unveiling of a small handheld device called Meta Charm. The index climbed 1.33% to 65,883.41 by midday. The broader Topix index also edged up 0.12% to 4,096.01. Markets were closed until Wednesday due to public holidays.
Ibiden, a component maker of CPUs, saw its shares jump 15.47% after Meta Platforms' announcement, lifting shares of other CPU-related companies. Socionext, Meiko Electronic, and Ushio Inc all gained over 10%, along with Ibiden, ranking as four of the top five gainers on the Tokyo Stock Exchange's prime market. Chip-testing equipment maker Advantest led the gainers with a 4.09% increase.
Despite rising bond yields, chip-related shares typically hold up during such periods, according to Kazuaki Shimada, a chief strategist at IwaiCosmo Securities. The 10-year government bond yield rose to 3.055% on Thursday, the highest since August 1996, due to a selloff of US Treasuries and inflation concerns as the yen weakened against the dollar.
Financial shares fell, impacting the broader Topix. Mitsubishi UFJ Financial Group dropped 1.08%, Sumitomo Mitsui Financial Group fell 1.6%, and Mizuho Financial Group slipped 2.02%. Of the more than 1,500 stocks traded on the TSE's prime market, 53% rose, 43% declined, and 3% remained flat.
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