Nikkei 225 rises 0.85% to 64621.24 in Tokyo as chip stocks gain

Japan's Nikkei 225 stood at 64621.24 at 15:25 Tokyo time on Wednesday, up 545.82 points, or 0.85%, from the previous close of 64075.42. Technology shares tied to artificial intelligence demand supported the move.

What happened

The Nikkei 225 gained through the Tokyo session on renewed optimism over AI demand and an advance on Wall Street. The index level was recorded five minutes before the 15:30 close of the afternoon session, which ran from 12:30.

Chip-related stocks were in focus. Reports that major Chinese technology firms had ordered Nvidia chips also added to the positive mood in the Japanese market. Other market coverage described a larger gain for the index at an earlier point in the session, but the level of 64621.24 at 15:25 is the figure used here.

Trade figures were also in view. Japanese exports grew 16.7%, according to data cited in market coverage. The Balance of Trade for September, released at 23:50 UTC on October 20, came in at -536.6 billion. The estimate was -181 billion, and the previous reading was -1111.9 billion.

In currency markets, USD/JPY stood at 158.13 at 06:45 UTC, unchanged from the previous close of 158.13. The change was -0.01, or -0.00%, so the pair was flat.

Why it matters

The Nikkei 225 has a large weighting in technology and export-oriented companies. Moves in AI-related stocks and in global chip sentiment therefore often show up quickly in the index. Wednesday's session followed that pattern, with AI demand and Wall Street's lead cited as the main supports.

The regional picture was similar. South Korea's KOSPI rose 3.03% after it had hit a six-month closing low. Chipmakers rallied there on record semiconductor exports and optimism that AI infrastructure demand will be sustained. Foreign investor buying also aided the rebound in Seoul.

The two markets share an exposure to the global semiconductor cycle. Japan reported export growth of 16.7%, and South Korea reported record semiconductor exports. Together, these figures show that overseas demand was a common theme across the two trade-driven economies on the day.

The trade data adds context on Japan's external position. A deficit of -536.6 billion is smaller than the -1111.9 billion recorded previously. It is wider than the -181 billion estimate. Export growth of 16.7% shows that overseas demand for Japanese goods remains an important part of the picture.

A flat USD/JPY matters for exporters because the yen's level affects the value of overseas earnings when they are converted back into yen. With the pair little changed at 158.13, currency moves were not a visible driver of the session.

What to watch next

Markets will look at whether AI-related enthusiasm holds in the next sessions, in Tokyo and in other Asian markets such as Seoul. Wall Street's direction will again be a reference for Asian trading at the open.

Attention will also stay on news about chip orders from Chinese technology companies. Further reports on Nvidia chip demand could influence sentiment in semiconductor-related shares across the region.

On the macro side, the next Japanese trade release will show whether the September deficit of -536.6 billion narrows or widens, and whether export growth remains close to the 16.7% reported. The yen will remain a reference point, with USD/JPY at 158.13 in London morning trading on October 21. Investors in Seoul will also follow whether foreign buying continues after the KOSPI rebound of 3.03%.