Japan's Nikkei climbs 1% as tech stocks track US rally ahead of BOJ

By Reuters News

TOKYO, Sept 18 (Reuters) - Japan's Nikkei share average jumped on Friday as investors scooped up AI and chip-sector stocks, taking cues from a tech-led rally on Wall Street overnight.

The tech-heavy Nikkei .N225 rose 1% to 64,786.86 by 0018 GMT.

Investors largely looked past a policy decision from the Bank of Japan later in the day, with a widely expected interest rate hike already priced in by the market well in advance.

AI-focused startup investor SoftBank Group 9984.T soared 5%, while chip-equipment makers Advantest 6857.T and Tokyo Electron 8035.T advanced 4% and 3.6%, respectively.

Fast-growing tech companies tend to be highly leveraged, and are sensitive to tighter monetary policy. Those worries are easing as a decline in crude oil lessens inflationary risks.

Japanese tech shares fell on Thursday, with investors snapping up beaten-down gaming shares instead. However, they sold those gaming shares on Friday as tech made a quick comeback.

Nintendo 7974.T and Konami 7966.T each fell about 2%.

The broader Topix index .TOPX lost 0.2%, given its lower concentration of AI-related names.

On the Nikkei, shares were almost evenly split, with 111 of its 225 components gaining versus 113 that fell, with one trading flat.

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