By Junko Fujita
TOKYO, Feb 24 (Reuters) - Japan's Nikkei share average rose on Tuesday as trading resumed after a long holiday weekend, with AI-related stocks rallying on expectation of further investment in AI infrastructure after a report of a possible Nvidia-OpenAI deal.
The Nikkei .N225 rose 0.76% to 57,256.55 by the midday break after closing 1.1% lower on Friday. The broader Topix .TOPX edged up 0.1% to 3,812.33. Markets were closed on Monday for a holiday.
"Although it is still a speculation, investors reacted to the news about Nvidia and OpenAI. Expectations for growth in AI infrastructure grew," said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.
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.
Fibre-optic cable makers jumped, with Furukawa Electric 5801.T surging 13.16% to become the top percentage gainer on the Nikkei. Sumitomo Electric 5802.T and Fujikura 5803.T rose 9% and 7.55%, respectively.
Chip-testing equipment maker Advantest 6857.T rose 3.95%.
Bank shares fell on caution over the potential impact of Blue Owl Capital OWL.N after the private capital firm said last week it would sell assets across three funds, return the proceeds to investors and pay down debt.
"If bank shares were sold off on the news about Blue Owl, it would be a good opportunity to buy," said Shinkin Asset's Fujiwara, as risks on Japanese banks are limited because their loan to deposit ratio has been kept low.
Mitsubishi UFJ Financial Group 8306.T fell 1.75%, Mizuho Financial Group 8411.T lost 3.29% and Sumitomo Mitsui Financial Group 8316.T fell 2.77%.
The bank share index .IBNKS.T lost 2.5% to become the worst performer among the Tokyo Stock Exchange's 33 industry sub-indexes.
Software-related shares fell, tracking losses in their U.S. peers on AI disruption fears.
Fujitsu 6702.T tanked 8.95%. NEC 6701.T and Nomura Research 4307.T lost 7.12% and 7.91%, respectively.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)
((junko.fujita@thomsonreuters.com;))