Japan Chip Shares Drive Nikkei to Record High as Hitachi Soars on OpenAI Report (UPDATE 1)

Reuters

12:21 JST, October 3, 2025 (updated at 16:38 JST)

TOKYO, Oct 3 (Reuters) – Japan’s Nikkei share average rallied to an all-time closing high on Friday as euphoria around artificial intelligence gripped the market, sending chip stocks surging.

The tech-heavy Nikkei .N225ended the day up 1.9% at 45,769.50, topping the record set on Thursday of last week by about 15 points.

The broader Topix .TOPX advanced 1.4%.

The gains came despite the event risk on the weekend, with the ruling Liberal Democratic Party set toelect a new leader on Saturday, who would ostensibly take over as prime minister.

Frontrunner Shinjiro Koizumi is seen as a continuity candidate, while rival Sanae Takaichi is viewed as a fiscal and monetary dove.

“If Takaichi wins, Monday could see stocks higher, bond yields higher, and a weaker yen,” said Nomura strategist Maki Sawada. “But whoever wins, there is likely to be some degree of fiscal loosening.”

Hitachi 6501.Tvaulted 10.3% to be the Nikkei’s best-performing stock on Friday, buoyed by a local media report about a partnership with ChatGPT maker OpenAI, which is now worth $500 billion.

The three biggest gainers in index-point terms were chip-testing equipment maker and Nvidia supplier Advantest 6857.T, AI-focused investor and OpenAI backer SoftBank Group 9984.T, and chip-making tool manufacturer Tokyo Electron 8035.T, up 4.3%, 3.6% and 2.3%, respectively.

Overnight, U.S. tech shares had also pushed Wall Street to new record highs. .N

Of the Nikkei’s 225 components, 181 rose, 43 fell and one traded flat.

Japanese shares got additional support from a weaker yen, which raises the value of overseas revenues at Japan’s many heavyweight exporters. The yen declined for a second day versus the U.S. dollar on Friday, following a four-session, 1.9% surge.