Key Takeaways
- Japanese shares rose as AI-related stocks gained.
- Investors bought ahead of the mid-term dividends deadline.
- Bank shares, particularly those with higher dividends, performed strongly.
Japanese shares saw a rise on Friday, with the Nikkei index climbing 1.23% to 66,318.14 by midday. The broader Topix also increased by 1.19% to 4,123.73.
The market's upward trend was driven by the rally in AI-related stocks, with companies like Tokyo Electron and Advantest gaining 4.04% and 2.45% respectively.
Bank shares, known for their higher dividend payouts, were among the top performers, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rising 3.02% and 2.9% respectively.
Ibiden, a maker of central processing unit components, saw a significant increase of 5.6% after a 14.57% rise in the previous session.
Daisuke Hashizume, a senior strategist at Daiwa Securities, attributed the market's strength to the demand for chip-related stocks and solid economic data supporting technology stocks.
Hashizume also noted that central banks' commitment to fighting inflation by raising interest rates bolstered investor confidence in the stock market.
Despite the overall positive trend, SoftBank Group saw a decline of 2.63% following Oracle's issuance of a 'force majeure' notice to a Blue Owl unit, citing potential delays in securing power for a New Mexico data center project.
Of the more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 68% rose, 27% fell, and 3% remained unchanged.
Investors picked up stocks to secure the right to dividend payouts, but moreover, the demand for chip-related stocks supported the market.
Daisuke Hashizume, Senior Strategist at Daiwa Securities
