Nikkei Rises on AI Trade Boost Despite Strong Yen

Japan's Nikkei rose 0.43% on Wednesday despite the yen remaining strong at near seven-month highs, due to gains in AI-linked stocks.

The 'AI trade' in Tokyo was able to overpower macro worries as companies tied to AI infrastructure saw significant increases in their share prices.

The news came from a multi-billion-dollar deal between Verizon and Corning, which is expected to boost Japanese cable makers such as Fujikura and Furukawa Electric. Fujikura rose 8.75% while Furukawa Electric jumped 13.20%, with chip-equipment maker Lasertec also increasing by 6.56%.

Nomura, a Japanese investment bank, noted that this kind of buildout can 'feed through' to Japanese cable makers, helping to drive their share prices higher.