Nikkei Hits Six-Week High as Micron Forecast Lifts Chip Stocks

The Nikkei share average in Japan rose to its highest level in over six weeks on Thursday, boosted by gains in chip-related shares after Micron Technology announced strong earnings.

The index jumped 2.28% to 68,276.92, its highest point since August 18. This followed the release of a summary from the Bank of Japan's September policy meeting, which showed some policymakers believed that interest rates should be increased faster or brought closer to the central bank's target level sooner.

Micron Technology's forecast for quarterly revenue above estimates and its customers' increased commitments under long-term supply agreements to $32 billion signaled strong demand for AI memory chips. This led to gains in AI-related shares, with Advantest rising 7%, Murata Manufacturing surging 6%, and Kioxia up 4%.

However, Wataru Akiyama, an equity strategist at Nomura Securities, cautioned against reading too much into the rally, noting that earnings from companies like Micron Technology may be driven by one-off news rather than a sustained trend.