The Nikkei 225 index in Japan hit its highest closing price in nearly four weeks due to the surge in artificial intelligence.

The Nikkei index in Japan rose by over 2% on Monday, reaching its highest closing price in nearly four weeks, driven by artificial intelligence and chip-related stocks. This followed a rebound on Wall Street last Friday; however, concerns about the situation in the Middle East limited the overall gains. The Nikkei 225 index increased by 2.08%, closing at 66,970.22 points, the highest closing level since July 15. The broader Topix index rose by 0.63%, closing at 4,100.61 points. Daisuke Hashizume, a senior strategist at Daiwa Securities, stated, "The rise in chip-related stocks supported the Nikkei index. A weakening expectation for Fed interest rate hikes is the driving factor." Chip-related companies Advantest and Tokyo Electron increased by 6.43% and 4.13%, respectively. Furukawa Electric rose by 7.62%, continuing the strong upward trend after the fiber optic cable manufacturer revised its annual net profit forecast upward last Friday. Ibiden, a supplier to AI barometer Nvidia, climbed by 4.03%. Ricoh Holdings soared by 22.79%, hitting the daily limit of 16,165 yen after the human resources service company raised its annual earnings forecast beyond market expectations. Fast Retailing, the owner of the Uniqlo brand, fell by 0.74%. Shares of Mitsui Mining & Smelting plunged 13.55% after its revised annual net profit forecast failed to meet market expectations.