Japan's Nikkei rises as AI-related shares track US semiconductor rally

By Junko Fujita

TOKYO, Sept 30 (Reuters) - Japan's Nikkei share average rose on Wednesday, with AI-related stocks tracking gains in US semiconductor shares, while lower oil prices overnight lifted economy-sensitive stocks.

The Nikkei .N225 was up 1.3% at 66,342.71, as of 0204 GMT. The broader Topix .TOPX gained 0.6% to 4,067.98.

US stocks ended slightly lower on Tuesday as Treasury yields continued to climb ahead of inflation and labour market data, although the Philadelphia Semiconductor Index .SOX advanced 1.3%.

"Not just technology stocks, but also shares sensitive to the economy rose in the current session," said Daisuke Hashizume, senior strategist at Daiwa Securities.

"But with more stocks falling in the overall market, investors were selective on stocks," he said.

Technology investor SoftBank Group 9984.T rose 6.23%, while chip-related shares Tokyo Electron 8035.T and Advantest 6857.T gained 3.13% and 1.03%, respectively.

Fibre-optic cable maker Fujikura 5803.T climbed 6.21%.

Taiyo Yuden 6976.T, a manufacturer of multi-layer ceramic capacitors to regulate power in AI servers, gained 3.8% after the company said it would form a business alliance with electronic parts maker TDK 6762.T. Shares of TDK climbed 1.3%.

Peer Murata Manufacturing 6981.T fell 2.7%.

Banking shares rose, with Sumitomo Mitsui Financial Group 8316.T and Mizuho Financial Group 8411.T up 1.3% and 2.35%, respectively.

The bank sub-index rose 1.38%.

Shippers .ISHIP.T rose 1.33%, with Mitsui OSK Lines 9104.T advancing roughly 2%.

Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 44% rose, 51% fell and 3% traded flat.