Tokyo stocks opened higher as chipmakers rallied on sustained artificial-intelligence demand expectations and a resilient U.S. economy. The Nikkei 225's 1.8% advance followed a Friday rebound that ended a four-session slide, with Nvidia's upbeat AI outlook underpinning gains in Japanese semiconductor suppliers.
Semiconductor suppliers powered Tokyo's benchmark index to a 1.8% gain at the opening bell, as investors wagered that artificial-intelligence spending would stay strong and that the U.S. economy would hold up.
The advance extended a rebound that began Friday, when the Nikkei snapped a four-session losing streak on a rally in SoftBank Group and gains on Wall Street. Nvidia's bullish outlook, which projected strong sales growth into 2028 and lifted its shares 4.2% in extended trading, has reinforced expectations that AI infrastructure spending will keep flowing to Japanese chipmakers and test-equipment suppliers such as Advantest and Tokyo Electron.
Chip names led the early advance, tracking a Wall Street semiconductor rally that has supported Tokyo-listed technology stocks in recent sessions. The gains came even as Japanese government bond yields hover near multi-decade highs, with the 10-year yield trading around 3 percent after touching that level for the first time in three decades, and as traders weigh the prospect of further Bank of Japan rate increases.
The rally follows a stretch of weakness for the Nikkei, which had been heading for a third straight weekly decline before Friday's rebound, pressured by expectations of BOJ tightening and elevated oil prices. Signs of strength in the U.S. economy have provided a supportive backdrop, easing concern that a slowdown in the world's largest market would curb demand for the AI hardware that underpins much of Japan's export-led chip sector.
The AI trade is regional in scope. South Korean chipmakers Samsung Electronics and SK Hynix also advanced after Nvidia's forecast, with the KOSPI climbing 1.22%, while a soft yen has kept Japanese exporters competitive even as it pushes up import costs. Investors now turn to U.S. jobs data due this week for fresh clues on the Federal Reserve's rate path, a reading that could set the tone for Japanese equities and the currency. A stronger-than-expected print would reinforce the case for a resilient U.S. economy supporting global chip demand, while a soft number could revive bets on Fed easing and lift the yen, a headwind for exporter shares.
This article is for informational purposes only and does not constitute investment advice.
