Japan's Nikkei rises as Strait of Hormuz reopening boosts sentiment, with AI stocks leading the gains, according to Reuters.
Japan's Nikkei share average rose as global efforts to reopen the Strait of Hormuz boosted sentiment, while artificial intelligence-linked stocks led gains, reported Reuters.
The Nikkei climbed 1.26 percent to close at 53,123.49, trimming its weekly loss to 0.47 percent. The broader Topix advanced 0.93 percent to 3,645.19.
The rebound followed moves by dozens of countries to restore Persian Gulf oil shipments disrupted by the war in Iran, after US President Donald Trump vowed more aggressive strikes.
Japan's economy remains vulnerable to crude price spikes due to its reliance on imported energy. Strategist Wataru Akiyama of Nomura Securities stated that expectations for reopening the Strait of Hormuz had lowered crude prices in Tokyo, thereby supporting equities.
He added that easing Middle East uncertainty and optimism over AI advancements were raising hopes that upcoming earnings reports would confirm strong performance.
There were 182 advancers against 41 decliners on the Nikkei. Furukawa Electric jumped 10.4 percent, and Fujikura rose 7.5 percent. Sakura Internet surged 20.2 percent after Microsoft announced a partnership involving a JPY1.6 trillion (US$10.02 billion) AI investment in Japan.
