Japan’s Nikkei Stock Average Ends at 3-Week High as Robot Makers Surge on Physical AI Bets (UPDATE 1)

Reuters

12:17 JST, December 4, 2025 (updated at 16:37 JST)

TOKYO, Dec 4 (Reuters) – Japan’s Nikkei share average closed at a three-week high on Thursday, extending its rally for a third session, as robot makers led gains on bets that physical AI will fuel growth.

The Nikkei .N225 climbed 2.33% to 51,028.42, its highest close since November 13. The broader Topix .TOPX closed at a record high, rising 1.92% to 3,398.21.

Robot maker Fanuc 6954.T jumped 12.98% to top the Nikkei gainers, extending its 18.4% surge this week after announcing a partnership with U.S. chip giant Nvidia NVDA.O to develop industrial robots powered by “physical AI,” which integrates artificial intelligence with robotic hardware.

“The market focus has shifted to robotics-related shares from chip stocks. This means investors keep looking for new themes,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

Fanuc’s peer Yaskawa Electric 6506.T jumped 11.37%. Earlier this week, Yaskawa also announced a tie-up in physical AI with SoftBank Group 9984.T.

SoftBank Group 9984.T jumped 9.18%.

Nabtesco 6268.T, another robot maker, jumped 11.28%.

Chip-testing equipment maker Advantest 6857.T slipped 0.77%.

“The market is not rising in a broad-based rally these days, but if investors sell some shares, they buy others, which means the money is rotating,” Shimada said.

Banks rebounded from the previous session’s declines, with Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T up 1.82% and 1.72%, respectively.

Drug maker Sumitomo Pharma 4506.T fell 4.73% to become the biggest percentage loser on the Nikkei.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s (TSE) prime market, 79% rose, 17% fell, and 3% traded flat.