Japan's Nikkei share average rose 0.76% to 57,256.55 on Tuesday as trading resumed after a holiday, lifted by gains in AI-related stocks on speculation of a Nvidia-OpenAI deal. Bank shares fell amid concerns over a U.S. firm's asset sales. The broader Topix index edged up 0.1%.
Tokyo's stock market resumed trading on February 24 after a long holiday weekend, with the Nikkei share average (.N225) up 0.76% to 57,256.55 at the midday break, rebounding from a 1.1% drop on the previous Friday. The broader Topix index (.TOPX) rose 0.1% to 3,812.33. Markets had been closed on Monday for a holiday.
AI-related stocks rallied on expectations of further investment in AI infrastructure following a Reuters report last week that Nvidia (NVDA.O) is close to finalizing a $30 billion investment in OpenAI to take a stake in one of its largest customers. Naoki Fujiwara, a senior fund manager at Shinkin Asset Management, said, “Although it is still a speculation, investors reacted to the news about Nvidia and OpenAI. Expectations for growth in AI infrastructure grew.”
Fiber-optic cable makers led the gains, with Furukawa Electric (5801.T) surging 13.16% to become the top percentage gainer on the Nikkei. Sumitomo Electric (5802.T) and Fujikura (5803.T) rose 9% and 7.55%, respectively. Chip-testing equipment maker Advantest (6857.T) gained 3.95%.
Bank shares declined on caution over the potential impact from Blue Owl Capital (OWL.N), which announced last week it would sell assets across three funds, return proceeds to investors, and pay down debt. The bank share index (.IBNKS.T) fell 2.5%, the worst performer among the Tokyo Stock Exchange's 33 industry sub-indexes. Shinkin Asset's Fujiwara noted, “If bank shares were sold off on the news about Blue Owl, it would be a good opportunity to buy,” adding that risks for Japanese banks are limited as their loan-to-deposit ratio has been kept low. Mitsubishi UFJ Financial Group (8306.T) dropped 1.75%, Mizuho Financial Group (8411.T) lost 3.29%, and Sumitomo Mitsui Financial Group (8316.T) fell 2.77%.
Software-related shares fell, tracking losses in U.S. peers amid fears of AI disruption. Fujitsu (6702.T) dropped 8.95%, NEC (6701.T) lost 7.12%, and Nomura Research (4307.T) declined 7.91%.
