Japan’s Nikkei share average concluded the trading session on Monday with an increase exceeding 2%, propelled by stocks associated with chips and artificial intelligence, following the upward movement in U.S. semiconductor equities. The Nikkei experienced an increase of 2.12%, closing at 66,399.84, marking its highest closing level since August 28. The broader Topix experienced an increase of 0.55%, reaching a level of 4,125.8. “With U.S. Treasury Secretary Scott Bessent seemingly curbing bond yields and stemming the fall of the yen, market volatility has fallen,” said Mamoru Shimode. “That has made it easier for stock investors to shift to risk-on mode.”

Chip-testing equipment manufacturer Advantest and chip-making equipment producer Tokyo Electron experienced an increase of over 4% each. Technology investor SoftBank Group experienced an increase of 11.22%. Memory maker Kioxia experienced an increase of 9.31%. Wall Street experienced a decline on Friday, influenced by a strong jobs report that increased the likelihood of an interest rate hike by the U.S. Federal Reserve this month. In contrast, the semiconductor index saw an increase of 3.4%. Kokusai Electric surged by 7.64% following the announcement from the Nikkei, the publisher of the 225-stock average, indicating that the chip equipment manufacturer would be included in the benchmark as part of a regular reshuffle starting in October.

Sony Group, a manufacturer of camera and audio equipment, experienced a decline of 2.7%. Banks experienced a decline, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group decreasing by 1.96% and 1.51%, respectively. Among the over 1,500 stocks listed on the prime market of the Tokyo Stock Exchange, 40% experienced an increase, 56% saw a decline, and 2% remained unchanged.