Nikkei jumps nearly 2% as AI, chip stocks rally
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[TOKYO] Japan’s Nikkei share average climbed nearly 2 per cent on Wednesday, led by chip and artificial intelligence-related stocks, as concerns over the economic impact of surging oil prices subsided.
The Nikkei was up 1.91 per cent at 54,726.58, as of 0140 GMT, while the broader Topix rose 1.66 per cent to 3,687.35.
“The equity market has been closely linked with oil prices. Today, the market eased excessive worries about the outlook of oil prices and scooped up heavyweight technology stocks,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
The Nikkei’s gains were further supported by an overnight rally on Wall Street, Yasuda said.
Shares of Delta Air Lines and American Airlines Group, both sensitive to oil price movements, rebounded after recent weeks of losses.
Crude oil prices remain close to US$100 a barrel amid worries about extended supply disruptions caused by the closure of the Strait of Hormuz shipping route.
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Oil prices slightly fell in Asian trade after sources citing American Petroleum Institute figures showed an increase in US crude inventories.
In Japan, chip-testing equipment maker Advantest jumped 4.95 per cent and AI-technology investor SoftBank Group rose 5 per cent. Fibre optic cable maker Fujikura rose 3.6 per cent.
Shares of Mitsui OSK Lines jumped 10 per cent after Reuters reported that Elliott Investment Management has taken a “significant” stake in the Japanese shipping company.
Mitsubishi Materials jumped 14 per cent after local media reported the maker copper products will participate in a project between Japan and the United States to develop rare earths, which will be agreed at a summit meeting of the two nations.
Japan Prime Minister Sanae Takaichi is due to meet US President Donald Trump in Washington D.C. at a leaders’ summit on March 19.
Tokyo Electric Power jumped 12.85 per cent after local media reported dozens of investment funds and companies, including KKR and Bain Capital, are showing interest in investing in the utility.
Drugmaker Chugai Pharm fell 4 per cent, making it the largest percentage loser in the Nikkei. REUTERS
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