The Nikkei 225 Index advanced 2.12% on Monday to close at 66,400, while the broader Topix Index added 0.55% to finish at 4,126. Japanese equities rose for a second consecutive session, led by technology stocks amid optimism that a new model from OpenAI will spur additional demand for AI-related computing power.
Domestic tech names also tracked gains in US chipmakers and memory stocks. However, broader market sentiment was tempered by stronger-than-expected US employment data, which reinforced expectations of a Federal Reserve rate hike later this month. At the same time, investors continued to price in a potential Bank of Japan rate increase at its September meeting, with persistent inflation and a weak yen remaining key concerns.
Among the standout tech performers were Kioxia Holdings (+9.3%), SoftBank Group (+11.2%), Advantest (+4.2%), Taiyo Yuden (+4.2%) and Ibiden Co (+8.4%). By contrast, financials and consumer-related stocks underperformed, with Mitsubishi UFJ (-2.0%) and Nintendo (-1.0%) among the notable decliners.
