Japan's Nikkei gains as Meta's AI gadget launch lifts CPU-related stocks

Japan's Nikkei index surged on Thursday, buoyed by a surge in CPU-related stocks following Meta CEO Mark Zuckerberg's unveiling of a compact handheld device, dubbed Meta Charm. The tech giant's announcement sent ripples across the market, as investors rallied around the demand for crucial computer components. The Nikkei averaged 65,883.41, up by 1.33% as of midday, while the broader Topix index inched up by 0.12% to 4,096.01.

Markets remained shuttered until Wednesday due to public holidays. Shares of Ibiden, a key CPU manufacturer, surged 15.47% after Meta's unveiling, propelling other CPU-linked firms to rise, according to Kazuaki Shimada, a chief strategist at IwaiCosmo Securities. Socionext, Meiko Electronic, and Ushio Inc all jumped more than 10%, alongside Ibiden, making them the top five gainers on the Tokyo Stock Exchange's prime market.

Advantest, a chip-testing equipment maker, led the pack with a 4.09% rise, providing the strongest boost to the Nikkei. SoftBank Group also showed gains, inching up by 0.52%. Shimada noted that chip-related shares often hold firm during periods of rising yields. However, the 10-year Japanese government bond yield climbed to 3.055%, its highest level since August 1996, following a sell-off of US Treasuries.

Inflation concerns weighed on the market, as the yen weakened against the dollar overnight. Bank shares suffered, with Mitsubishi UFJ Financial Group falling 1.08%, Sumitomo Mitsui Financial Group dropping 1.6%, and Mizuho Financial Group trailing 2.02%. The TSE’s value share index slipped by 0.2%, while the growth stock index rose by 0.48%.

Among over 1,500 stocks traded on the TSE's prime market, 53% climbed, 43% fell, and 3% remained unchanged.