Japanese stocks rise as AI shares offset economic concerns

The Nikkei 225 gained 0.74% to close at 69,220 on Monday, extending last week?s gains despite data showing Japan?s economy grew less than expected in the second quarter. Weak domestic demand offset strong exports, but continued demand for artificial intelligence products supported companies linked to the global semiconductor supply chain.

Chip and AI-related stocks led the gains, with Kioxia Holdings, Fujikura, Advantest, Furukawa Electric, and Tokyo Electron all rising. Financial and consumer stocks mostly fell.

Japanese shares also advanced despite JGB yields hitting fresh 30-year highs as investors increased bets on an imminent Bank of Japan rate hike. In corporate news, Nvidia was reportedly considering investing up to $3 billion in SB Energy, a SoftBank Group unit developing a major data center project in Ohio for OpenAI.

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