The Nikkei 225 Index increased by 0.71%, closing at 61,867 on Thursday, thereby breaking a two-session decline, as semiconductor stocks surged following Advantest’s announcement of a more robust-than-anticipated profit forecast. Shares of the chip-testing equipment maker surged over 10% following a 35% increase in its annual operating profit forecast, bolstered by strong demand fuelled by artificial intelligence investments.

The rally extended to various technology and AI-related firms, with Kioxia Holdings increasing by 2.7%, Tokyo Electron by 4.3%, Murata Manufacturing by 2.3%, Ibiden Co by 1.2%, and Hitachi by 6.1%. Meanwhile, SoftBank Group experienced a decline of 2.7% following a nearly 6% drop in its subsidiary Arm Holdings during after-hours trading, attributed to a sales forecast that did not meet investor expectations.

Financial and consumer-related stocks underperformed the broader market, with declines observed in Mitsubishi UFJ (-3.5%), Toyota Motor (-2.7%), and Fast Retailing (-2.5%).