Nikkei marks record closing high as AI shares rally on Micron forecast

[TOKYO] Japan’s Nikkei share average rose more than 4 per cent on Thursday (Jun 25) to notch a record closing high, as AI-related stocks surged after US memory chipmaker Micron’s upbeat quarterly profit and revenue forecast.

The Nikkei closed 4.6 per cent higher at 72,366.34, snapping two straight sessions of declines. The broader Topix rose 1.33 per cent to 4,016.47.

Micron, a key supplier for Nvidia AI processors alongside South Korean chipmakers, forecast quarterly profit and revenue well above expectations and said customers had committed US$22 billion to secure memory chip supply.

“The Nikkei’s sharp gain is simply due to Micron’s earnings,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.

“The US semiconductor index, which is highly correlated with the Nikkei, will probably rise later in the day.”

On Thursday, SoftBank Group reversed course to jump 8 per cent.

“Investors tried to lock in profits in technology stocks in the previous session ahead of Micron earnings, but they scooped up the shares today, and SoftBank Group was one of them,” said Daisuke Hashizume, a senior strategist at Daiwa Securities.

Chip-testing equipment maker Advantest jumped 15 per cent and chip-making equipment maker Tokyo Electron rose 7.78 per cent. Memory chipmaker Kioxia advanced 12.27 per cent.

Makers of AI-data centre materials advanced: Murata Manufacturing and Taiyo Yuden climbed 7.21 per cent and 11.2 per cent, respectively.

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Defying the broader strength, energy-related stocks fell after oil prices extended declines. The mining sector dropped 3.18 per cent, with Inpex down 3.35 per cent, while oil refiners fell 1.38 per cent.

Japanese shippers slipped 2 per cent, with Kawasaki Kisen down 3.87 per cent.

Of the more than 1,500 stocks on the Tokyo Stock Exchange’s prime market, 66 per cent rose, 30 per cent fell and 3 per cent were flat. REUTERS