Japan's Nikkei rises as AI-related stocks shine; companies on China export control list mixed

Reuters
02/24
UPDATE 2-Japan's Nikkei rises as AI-related stocks shine; companies on China export control list mixed

Updates with closing prices

By Junko Fujita

TOKYO, Feb 24 (Reuters) - Japan's Nikkei share average rose on Tuesday as trading resumed after a long holiday weekend, with artificial intelligence-related stocks rallying on speculation of further investment in the red-hot sector.

The Nikkei .N225 rose 0.9% to close at 57,321.09, while the Topix .TOPX edged up 0.2%.

Nvidia NVDA.O is close to finalising a $30 billion investment in OpenAI as the chipmaker moves to take a stake in one of its largest customers, Reuters reported last week. Nvidia, a bellwether for the AI industry, is due to report its results on Wednesday.

"Although it is still a speculation, investors reacted to the news about Nvidia and OpenAI," said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management. "Expectations for growth in AI infrastructure grew."

Fibre-optic cable makers jumped, with Furukawa Electric 5801.T surging 15%.

China added Japanese companies to a list of export controls aimed at curbing what it termed Japan's "remilitarisation," leading to a mixed reaction in shares of the firms on the list.

Mitsubishi Materials 5711.T rose 3.8%, while Subaru 7270.T sank 3.5%.

The news sent Japanese defence stocks sharply lower, with Mitsubishi Heavy Industries 7011.T down 3.1% and IHI 7013.T falling 5.7%.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu and Mrigank Dhaniwala)

((junko.fujita@thomsonreuters.com;))

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