Nikkei snaps 3-day losses as chip shares sought on firm AI demand
TOKYO (Kyodo) -- Tokyo stocks rose Wednesday with the Nikkei index snapping a three-day losing streak, as semiconductor-related shares were sought on expectations for continued growth in demand for artificial intelligence.
The 225-issue Nikkei Stock Average ended up 300.64 points, or 0.80 percent, from Tuesday at 37,747.45. The broader Topix index finished 14.02 points, or 0.51 percent, higher at 2,785.13.
On the top-tier Prime Market, gainers were led by pulp and paper, oil and coal product and securities house issues.
In the foreign exchange market, the U.S. dollar briefly strengthened to the lower 144 yen range in Tokyo, lifted by receding concern over a U.S. economic slowdown following stronger-than-expected job openings data, dealers said.
Heavyweight chip shares tracked overnight gains by their U.S. counterparts after U.S. technology giant Meta Platforms Inc. announced it signed a deal to secure electricity from a nuclear plant to meet growing power demand from AI and data centers, brokers said.
"Firm AI demand is one of the factors needed for a stock market recovery, and hopes for a reviewing of U.S. export curbs on chips to China would grow if tensions between the two largest economies recede," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
"The outlook for U.S.-China relations is a significant factor for semiconductors," Ichikawa added.
The yen's depreciation also helped lift some export-oriented auto and machinery issues as the weaker yen increases exporters' overseas profits when repatriated.
Market sentiment was supported by hopes for progress in U.S.-China tariff negotiations with the two leaders expected to talk soon, while the doubling of U.S. tariffs on steel and aluminum imports to 50 percent, which took effect Wednesday, had little impact on the market, brokers said.
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