Tokyo Stocks Rally on AI and Semiconductor Gains Amid Elevated Oil Prices

Tokyo stocks ended higher on Thursday as losses from elevated crude oil prices and rising bond yields were offset by gains in AI-related shares, semiconductors, and financial sectors.

The Nikkei Stock Average rose 128.17 points or 0.20% to close at 65,270.95, while the Topix index finished 7.94 points higher at 4,054.58.

Rising crude oil prices boosted the US dollar, which traded in the mid-153 yen level, and speculation about a Bank of Japan rate hike supported the yen.

Investor sentiment was dampened by concerns over inflation and rising bond yields, but financial stocks benefited from the situation, leading the gains.