10.11.202600:50:43UTC+00Japanese Shares Advance on Chip Rally

The Nikkei 225 jumped more than 2% on Tuesday to move back above the 60,000 mark, extending its advance for a second straight session. The rally tracked strong gains on Wall Street, where semiconductor stocks rebounded from last week’s sharp selloff.

Sentiment toward the artificial intelligence sector also improved after coming under pressure last week amid worries about tighter regulatory scrutiny and a potential slowdown in data center expansion following Democrats’ sweeping victory in the US midterm elections. Investors are now looking ahead to upcoming earnings from neocloud provider CoreWeave for further clues on the strength of AI-related momentum.

Japanese semiconductor-related names were among the strongest performers, with Kioxia Holdings up 6.9%, Advantest gaining 5.3%, Tokyo Electron climbing 5.8%, and SoftBank Group soaring 11.9%. Major banks also supported the advance, as Mitsubishi UFJ rose 3.4% and Mizuho Financial added 4.4%.