The Nikkei 225 Index Closes 0.50% Higher

The Nikkei 225 Index went up by 330 points or 0.50 percent on Thursday to close at 66445 points. The rise was led by Nippon Paper (5.07%), Sumitomo Metal Mining (4.91%) and IHI (3.99%). On the downside, the weakerst performers were Takashimaya (-6.58%), J Front Retailing (-5.76%) and Isetan Mitsukoshi (-4.89%).

Asian equity markets mostly rose on Thursday, supported by gains in semiconductor stocks after major US technology firms signaled continued heavy investment in AI infrastructure. South Korea outperformed, with the Kospi climbing more than 3% as chip giants SK Hynix and Samsung Electronics rallied. Japan’s Nikkei also advanced around 1%, while shares in Australia, China, and Hong Kong opened higher. Investors remained encouraged by Alphabet’s higher capital spending plans, with the company expecting to invest up to $205 billion this year, boosting optimism over the outlook for regional chipmakers. Meanwhile, markets continued to monitor Middle East tensions as escalating conflict pushed oil prices to six-week highs, raising concerns over supply disruptions and inflation risks.

The Nikkei 225 Index rose 0.46% to close at 66,422, while the broader Topix Index was up 0.51% to 4,054 on Thursday, led by gains in chip-related stocks. Regional semiconductor shares mirrored gains in their US peers following Alphabet’s strong quarterly results and its increased capital spending outlook that strengthened expectations of sustained investment in AI infrastructure. However, the prospect of an earlier rate hike by the Bank of Japan capped gains. Traders kept a close watch on oil prices after Iran-backed Houthi militants said they had targeted two Saudi Arabian tankers in the Red Sea. Attention is also on the country's June consumer inflation report, due on Friday, for further clues on the BOJ’s policy outlook. Top tech gainers in Japan included Advantest (4.1%), Murata Manufacturing (2.7%), SoftBank Group (3.8%), and Lasertec (5.0%). Financial stocks also outperformed, such as Mitsubishi UFJ (2.2%), Mizuho Financial (2.8%), and Sumitomo Mitsui (1.3%).