TOKYO: Japan’s stock market had a strong start to the day, with investors piling into AI-related companies and chip stocks.

The Nikkei 225 surged more than 3%, climbing to 65,979.02, while the broader Topix index gained 1.52%.

The biggest winners were companies linked to the global artificial intelligence boom.

Chip-testing equipment maker Advantest jumped 8%, while semiconductor equipment giant Tokyo Electron climbed 4%, following strong performances by AI and technology stocks on Wall Street overnight.

The rally reflects growing investor confidence that demand for AI chips and related technology will continue to rise as companies around the world invest heavily in artificial intelligence.

It wasn’t just a handful of stocks doing well.

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More than 67% of companies listed on the Tokyo Stock Exchange’s Prime Market moved higher during the session, while 29% declined and the remaining shares traded little changed.

Investors also bought companies with strong earnings prospects, adding further momentum to the market.

Japan’s stock market has been one of Asia’s standout performers in recent years, supported by corporate reforms, strong company earnings and growing interest in AI and semiconductor businesses.

With global investors continuing to bet big on artificial intelligence, Japanese chipmakers are benefiting from renewed demand as they play an important role in the global semiconductor supply chain.