Shares surge amid rebound in AI stocks

Financial companies and exporters also saw gains after the Bank of Japan raised its key policy rate on Friday to its highest level in 30 years

Shares surged higher Monday in Asia and U.S. futures rose after a rebound in AI-related stocks like Nvidia spurred a rally.

Nikkei 225 gained 1.8% to 50,402.39, helped by hefty gains for computer chip makers and other companies benefiting from the boom for artificial intelligence.

Semiconductor maker Tokyo Electron jumped 6.3% while chip testing equipment maker Advantest gained 4.5%.

Financial companies and exporters also saw gains after the Bank of Japan raised its key policy rate on Friday to its highest level in 30 years. Instead of causing the yen to strengthen as might be expected, it has fallen to near its lowest level this year.

Early Monday, the dollar bought 157.40 yen, down from 157.60 late Friday. Heavy selling of the yen for dollars caused a top Finance Ministry official in charge of foreign exchange issues, Atsushi Mimura, to warn that regulators would act to curb any excessive fluctuations in the currency.

Hang Seng edged 0.1% higher to 25,713.53. The Shanghai Composite index advanced 0.7% to 3,917.72.

China’s central bank left its 1-year and 5-year loan prime rates unchanged, as expected.

Elsewhere in Asia, Kospi added 2.1% to 4,105.93 and Taiex was 1.6% higher, helped by a 2.5% gain for chip maker TSMC.

In Australia, the S&P/ASX 200 picked up 0.9% to 8,699.90.

Asian equity markets are stepping onto the floor with a constructive bias, taking their cue from Friday’s solid rebound in U.S. stocks and the growing belief that the final stretch of the year still belongs to the bulls, Stephen Innes of SPI Asset Management said in a commentary.