Japan's Nikkei Jumps on AI and Chip Stocks Despite Rate Hike Expectations

The Nikkei 225 index in Japan rose by 1% to 64,786.86 on Friday, driven by gains in AI and chip-related stocks. This follows a global trend where markets often chase companies tied to AI spending when US tech strengthens.

SoftBank Group, a Japanese tech investor with significant stakes in AI-linked firms, led the charge with a 5% increase. Other chip-equipment makers Advantest and Tokyo Electron also saw gains of 4% and 3.6%, respectively.

The Bank of Japan's widely expected rate hike later in the day had little impact on the market, as investors seemed to have already priced it in. The central bank's move is typically seen as pressure on growth stocks due to higher borrowing costs and discount rates making future profits less valuable.