The Nikkei 225 index climbed approximately 1.1% on Wednesday, approaching the 64,000 level and extending its gains for the second consecutive session. This rise follows a rally on Wall Street, fueled by renewed optimism surrounding the artificial intelligence (AI) sector.
Positive sentiment toward AI strengthened after Broadcom announced a US$63 billion funding deal linked to the use of its technology by Anthropic. Meanwhile, in South Korea, SK Hynix reported a surge in revenue and operating profit, driven by high demand for AI-related products.
Technology stocks and companies with exposure to AI led the gains in the Japanese market. Kioxia jumped 7.3%, Taiyo Yuden rose 7.7%, Ibiden climbed 5.6%, while Advantest and SoftBank Group each gained 2.3%.
Market sentiment was further bolstered by a decline in oil prices, as diplomatic efforts to de-escalate the conflict in the Middle East intensified. Lower energy costs are a positive development for Japan—a major oil importer—as they help alleviate cost pressures on both businesses and the broader economy.
Investors are now awaiting policy decisions from the Federal Reserve, the European Central Bank, and the Bank of Japan, all of which are expected to keep interest rates unchanged during this week’s meetings. However, with the market keeping a close watch on the possibility of rate hikes in December, the future direction of central bank policy remains a critical factor for the sustainability of the Nikkei’s rally.