Japan's Nikkei gains as Meta's AI gadget launch lifts CPU-related stocks

TOKYO: Japan's Nikkei average rose on Thursday in a holiday-shortened week as CPU-related shares jumped after Meta chief executive officer Mark Zuckerberg unveiled a small handheld gadget called Meta Charm, fuelling demand for key computer components.

The Nikkei was up 1.33 per cent at 65,883.41 by the midday break. The broader Topix edged up 0.12 per cent to 4,096.01.

Markets were closed until Wednesday due to public holidays.

Shares of Ibiden, a component maker of CPUs (central processing units), jumped 15.47 per cent after Meta Platforms 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, Meiko Electronic and Ushio Inc jumped more than 10 per cent each, making them, along with Ibiden, four of the top five gainers on the Tokyo Stock Exchange's prime market.

Chip-testing equipment maker Advantest rose 4.09 per cent, providing the biggest boost to the Nikkei. SoftBank Group edged up 0.52 per cent.

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

Japan's 10-year government bond yield rose to 3.055 per cent 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 fell 1.08 per cent, Sumitomo Mitsui Financial Group lost 1.6 per cent and Mizuho Financial Group slipped 2.02 per cent.

TSE's value share index edged 0.2 per cent lower, while the growth stock index rose 0.48 per cent.

Of more than 1,500 stocks trading on the TSE's prime market, 53 per cent rose, 43 per cent declined and 3 per cent were flat.