FX.co ★ Japanese Shares Advance on AI-Fueled Rally

The Nikkei 225 Index advanced 1.08% to close at 63,954 on Wednesday, rising for a second consecutive session and mirroring gains on Wall Street. Sentiment was buoyed by strong earnings from major technology firms, which further reinforced optimism surrounding the artificial intelligence sector.

Broadcom announced $63 billion in financing linked to Anthropic’s use of its technology, while Oracle deepened its collaboration with OpenAI. At the same time, investor appetite for AI-related exposure was underscored by Meta’s $25 billion share offering, which was oversubscribed fivefold. In addition, South Korean chipmaker SK Hynix reported a sharp increase in both revenue and operating profit, supported by robust AI-driven demand.

Investors also turned their attention to key monetary policy decisions due this week, with the Federal Reserve, European Central Bank, and Bank of Japan all widely expected to keep interest rates on hold, even as markets assess the likelihood of potential rate hikes in December.

Technology and AI-related stocks led the advance on the Nikkei, with notable gains from Kioxia (13.8%), Advantest (3.2%), Taiyo Yuden (7.1%), SoftBank Group (4.7%), and Ibiden Co. (7.9%).