TOKYO: Japan's Nikkei share average closed more than 2% higher on Monday, led by chip and AI-linked stocks after gains in U.S. semiconductor shares.
The Nikkei rose 2.12% to 66,399.84, its highest close since August 28. The broader Topix climbed 0.55% to 4,125.8.
"With U.S. Treasury Secretary Scott Bessent seemingly curbing bond yields and stemming the fall of the yen, market volatility has fallen," said Mamoru Shimode, chief strategist at Resona Asset Management.
"That has made it easier for stock investors to shift to risk-on mode."
Chip-testing equipment maker Advantest and chip-making equipment maker Tokyo Electron rose more than 4% each. Technology investor SoftBank Group jumped 11.22%. Memory maker Kioxia rose 9.31%.
Wall Street fell on Friday as a robust jobs report raised the probability of the U.S. Federal Reserve raising rates this month, but the semiconductor index rose 3.4%.
Kokusai Electric jumped 7.64% after the Nikkei, the publisher of the 225-stock average, said on Friday it would add the chip equipment maker to the benchmark from October in a regular reshuffle.
Camera and audio equipment maker Sony Group slipped 2.7%.
Banks fell, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group down 1.96% and 1.51%, respectively.
Of the more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 40% rose, 56% fell and 2% traded flat. - Bernama
