Japan's Nikkei hits 3-month high as AI shares rally
TOKYO: Japan’s Nikkei share average rose more than 2% to a three-month high on Monday, boosted by AI-related stocks, following gains on Wall Street at the end of last week. The Nikkei rose 2.53% to 70,037.61, its highest level since early July, by the midday break. The broader Topix rose 1.16% to 4,138.57. “Investors scooped up AI-related stocks, but the market sentiment is muted compared with…
Japan's Nikkei share average reached a three-month high on Monday, climbing more than 2% to 70,037.61, its highest level since early July. The broader Topix also rose, gaining 1.16% to 4,138.57. The increase in the Nikkei was driven by gains in AI-related stocks, according to Mamoru Shimode, chief strategist at Resona Asset Management.
While the AI rally is expected to continue, he believes the market sentiment is currently more cautious compared to earlier this year when the Nikkei hit a record high. The surge was primarily fueled by chip-related Advantest and Tokyo Electron, which rose 4.5% and 5.7%, respectively. SoftBank Group, a technology investor, also saw a 3.68% increase.
Meanwhile, memory maker Kioxia saw a modest gain of 0.49%. Despite the overall market rise, the gains were limited as some investors who had lost money in the shares sold their stocks during the rally, pushing the share prices nearly 50% below the record high set in mid-June.
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