TOKYO - The Nikkei stock index on Tuesday ended above the 70,000 line for the first time since early July as optimism about artificial intelligence- and semiconductor-related shares boosted investor sentiment.
The 225-issue Nikkei Stock Average ended up 737.12 points, or 1.05 percent, from Monday at 70,683.98. The broader Topix index finished 38.34 points, or 0.92 percent, higher at 4,183.56.
On the top-tier Prime Market, the main gainers were nonferrous metal, precision instrument and insurance issues.
The U.S. dollar strengthened to the lower 158 yen range in Tokyo, amid speculation that the interest rate differential between Japan and the United States would widen.
At 5 p.m., the dollar fetched 158.10-13 yen compared with 157.84-94 yen in New York and 157.65-67 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1239-1241 and 177.71-75 yen against $1.1217-1227 and 177.16-26 yen in New York and $1.1200-1201 and 176.57-61 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond ended up 0.020 percentage point from Monday's close at 3.105 percent, as the debt was sold following rises in U.S. Treasury yields.
Stocks tracked overnight advances on Wall Street, led by gains among technology shares after Taiwanese electronics giant Hon Hai Precision Industry Co. on Monday reported robust September sales, indicating strong demand for AI infrastructure, dealers said.
Fading concerns over crude oil supply, which pushed the benchmark West Texas Intermediate crude oil futures contract below $90 per barrel, also supported investor sentiment.
Although some investors locked in gains after the Nikkei index rose over 1,600 points the previous day, the benchmark index extended its gains in the afternoon as AI- and chip-related shares gathered momentum, with most sectors turning positive.
"Growing hopes for monetizing AI...are driving buying in related issues," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
Meanwhile, Yamaguchi added that the momentum is likely to last only through the end of the week, and the market could lack clear trading cues until late October, when the earnings season gets into full swing.
