Japan's Nikkei ends higher as Meta AI device lifts CPU-related stocks

By Reuters News

By Junko Fujita

TOKYO, Sept 24 (Reuters) - Japan's Nikkei average rose on Thursday in a holiday-shortened week, extending its winning streak to four sessions as CPU-related stocks jumped after Meta unveiled its AI gadget Meta Charm, fuelling demand prospects for computer components.

The Nikkei .N225 rose 0.76% to 65,513.99. The broader Topix .TOPX gave up early gains to slip 0.39% to 4,075.3.

Markets were closed until Wednesday due to public holidays.

Shares of Ibiden 4062.T, a component maker of CPUs (central processing units), jumped 14.57% after Meta META.O CEO Mark Zuckerberg unveiled Meta Charm, a device designed to use its new Muse AI assistant.

The announcement lifted shares of other CPU-related companies, said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

Socionext 6526.T, Meiko Electronic 6787.T and Ushio Inc 6925.T jumped more than 10% each, making them top gainers on the Tokyo Stock Exchange's prime market.

Chip-testing equipment maker Advantest 6857.T rose 3.15%, providing the biggest boost to the Nikkei. Chip-making equipment maker Tokyo Electron 8035.T rose 1.53%.

"In recent sessions, chip-related shares tend to withstand rising yields," said Shimada.

Japan's 10-year government bond yield rose to 3.075% on Thursday, its highest point since August 1996, following a selloff of US Treasuries. The market also weighed inflation worries as the yen lost ground to the dollar overnight.

Bank shares fell, weighing on the Topix.

Shares of Mitsubishi UFJ Financial Group 8306.T fell 1.3%, Sumitomo Mitsui Financial Group 8316.T lost 2.21% and Mizuho Financial Group 8411.T slipped 2.53%.

Of more than 1,500 stocks trading on the TSE's prime market, 43% rose, 53% declined and 2% were flat.

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