Tokyo stocks rose Wednesday as technology issues were lifted on hopes of growing demand for artificial intelligence, but gains were limited ahead of a holiday in the U.S. market.
The 225-issue Nikkei Stock Average ended up 88.65 points, or 0.23 percent, from Tuesday at 38,570.76. The broader Topix index finished 12.88 points, or 0.47 percent, higher at 2,728.64.
On the top-tier Prime Market, gainers were led by insurance, transportation equipment and real estate issues.
The U.S. dollar was firm in the upper 157 yen range amid expectations that the U.S. and Japanese interest rate differential is likely to remain wide, dealers said.
Stocks were buoyed by tech firms after U.S. chip giant Nvidia Corp. became the world's most valuable public company overnight, with related issues such as chip testing equipment maker Advantest gaining ground.
But some gains were trimmed in the afternoon after investors found few reasons to keep buying as the U.S. financial markets will be closed Wednesday for a public holiday, analysts said.
"Tech gains did not spread across the sector," said Maki Sawada, a strategist in the investment content department at Nomura Securities Co. "Participants also opted to wind up their positions ahead of a U.S. holiday."
Automakers also drew buying after Japanese May trade data showing robust auto shipments to the United States helped ease concerns among investors over the negative impact of a vehicle testing scandal involving major companies including Toyota Motor Corp., brokers said.
