Nikkei Hits Six-Week High on Chip Stock Rally Fuelled by AI Optimism
Japan's Nikkei share average surged to a six-week high on Thursday, driven by gains in chip-related stocks following Micron Technology's strong earnings guidance.
The tech giant's upbeat outlook boosted investor sentiment towards artificial intelligence-linked stocks, with shares of Advantest, Murata Manufacturing, and Kioxia jumping 7%, 6%, and 4% respectively.
However, the broader market remained under pressure, with 157 Nikkei constituents declining compared to 68 gainers. Financial stocks, including Tokio Marine Holdings and T&D Holdings, were among the biggest decliners, falling 4.11% and 3.18% respectively.
The Bank of Japan's policy meeting summary reinforced expectations that the central bank could continue tightening monetary policy, adding uncertainty to Japanese equities even as the technology sector benefited from AI optimism.