Japan's Nikkei 225 Index closed up 2 percent at 66,300 on Monday, driven by technology stocks tracking earlier U.S. gains. The broader Topix Index rose 0.8 percent to 4,136, as macroeconomic concerns constrained overall risk appetite.
Chip-equipment makers Lasertec Corp. Kioxia Holdings Corp. and Tokyo Electron Ltd. led the rally. SoftBank Group Corp. an investor in OpenAI, also posted strong gains. The moves followed a 3.4 percent rise in the SOX Index on Friday.
"The Nikkei experienced considerable tailwind from the SOX's strength," said Hiroshi Namioka, chief strategist at TD Asset Management. Tech stocks attracted buying despite hotter-than-expected U.S. jobs data, which typically stokes interest rate concerns.
Namioka noted that many tech shares appeared attractive after recent declines and that perceptions of chip stocks as overvalued had faded.
Gains in AI-related stocks extended beyond Japan. OpenAI's Friday announcement of its new Astra model rippled across regional chipmakers, with SK Hynix Inc. and Samsung Electronics Co. climbing Monday morning.
Declines in banking and services sectors offset some tech-driven momentum on the Topix.
Uncertainty over the yen's trajectory and elevated bond yields kept investors cautious ahead of the Bank of Japan's policy meeting next week. Remarks from Bank of Japan board member Kazuyuki Masu on Thursday in Tokyo are also expected to influence market sentiment.
