Japanese shares rise on AI-shares rally, dividend hunt
TOKYO: Japanese shares rose on Friday as AI-related stocks gained and investors bought ahead of Monday's deadline to qualify for mid-term dividends.
Tokyo's Japanese shares climbed on Friday, driven by AI-related stocks and anticipation of mid-term dividend eligibility by Monday. The Nikkei index rose 1.23% to 66,318.14 by midday, while the broader Topix gained 1.19% to 4,123.73. Investors sought to secure dividend payouts, while chip-related stocks bolstered the market, according to Daisuke Hashizume, a senior strategist at Daiwa Securities.
Bank shares, known for higher dividends, led the Tokyo Stock Exchange's 33 industry sub-indexes, surging 3.23%. Mitsubishi UFJ Financial Group contributed the most to the Topix's gain, followed by Sumitomo Mitsui Financial Group. Chip stocks such as Tokyo Electron and Advantest saw significant gains, propelling the Nikkei's rise.
East Asian technology stocks benefited from solid economic data and the clear stance of U.S. and Japanese central banks to combat inflation by raising interest rates, boosting investor confidence. However, SoftBank Group suffered a 2.63% drop as Oracle's shares fell three percent the previous day due to a force majeure notice from Oracle to a Blue Owl unit, a developer of a large data center in New Mexico. Out of more than 1,500 stocks on the TSE's prime market, 68% rose, 27% fell, and 3% closed flat.
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