Nikkei rises for 5th day on dividend-driven buying, AI, chip gains

Tokyo stocks experienced a five-day winning streak on Friday, with the Nikkei stock index reaching a five-trading-day high. The rise was driven by dividend-focused buying, as well as continued gains in AI and semiconductor-related shares. The 225-issue Nikkei Stock Average closed at 66,364.20, up 1.30 percent from the previous trading day.

The broader Topix index also rose 1.31 percent, closing at 4,128.59. Among the top-tier Prime Market gainers were bank, securities, and electric appliance issues. A brief weakening of the U.S. dollar below 158 yen was observed after Japanese Finance Minister Satsuki Katayama revealed that U.S. President Donald Trump had expressed concern about the yen's depreciation during a meeting with Japanese Prime Minister Sanae Takaichi in New York.

The 10-year Japanese government bond yield saw a spike to 3.115 percent, its highest level since August 1996, due to speculation of further Federal Reserve rate hikes. Investors across various sectors took advantage of the market's mixed performance on Wall Street in order to secure their positions ahead of the final day of the trading week to qualify for dividends.

AI and chip-related shares led the gains, following positive news and solid gains in the U.S. market during Japan's recent five-day holidays. Strong Japanese bond yields also contributed to gains in the financial sector. Despite the yen's strength during the trading session, it did not negatively impact the stock market. Additionally, the rise in West Texas Intermediate crude oil futures subsided.

SoftBank Group, however, weighed on the Nikkei stock index following reports of Oracle Corp. issuing a force majeure notice to the developer of a data center project, which is a key component of the Stargate initiative in which SoftBank Group is involved.