The Nikkei 225 Index Closes 1.96% Higher

The Nikkei 225 Index climbed 2.12% to close at 66,400 while the broader Topix Index rose 0.55% to 4,126 on Monday, with Japanese shares advancing for a second straight session as technology stocks rallied on optimism about a new model from OpenAI that could boost demand for AI computing power. Loca tech shares also followed advances among US chipmakers and memory stocks, although the broader market faced pressure from stronger-than-expected US jobs data that increased expectations for a Federal Reserve rate hike this month. Investors also continued to price in a Bank of Japan rate increase at its September meeting as persistent inflation and a weak yen remain key concerns. Leading tech gainers included Kioxia Holdings (9.3%), SoftBank Group (11.2%), Advantest (4.2%), Taiyo Yuden (4.2%) and Ibiden Co (8.4%). Meanwhile, financial and consumer stocks lagged, with Mitsubishi UFJ (-2%) and Nintendo (-1%) among the decliners.

The Nikkei 225 Index went up by 1274 points or 1.96 percent on Monday to close at 66294 points. The rise was led by Softbank (10.97%), Resonac Holdings (6.47%) and Panasonic (5.60%).

Technology shares across Asia Pacific advanced sharply on Monday, fueled by optimism that a new model from OpenAI could drive stronger demand for memory chips. The gains followed a rally in US chipmakers and memory stocks on Friday as sentiment toward the sector improved, although broader markets remained under pressure after strong US jobs data reinforced expectations of a Federal Reserve rate hike this month. Investors also remained cautious as oil prices extended their advance after the US and Iran exchanged strikes on ships over the weekend, stoking fresh inflation concerns. Technology-heavy markets in Japan and South Korea led the regional advance, with the Nikkei 225 and KOSPI Composite rallying more than 2% and 3%, respectively.