Japan's blue-chip Nikkei 225 index rallied to a new high thanks to a positive earnings report from chip equipment maker Advantest and a new Japan-US investment plan that boosted tech stocks.

However, exporters such as automakers weighed on the broader Topix index, as the yen's strength against the US dollar dampened market sentiment. The Nikkei rose 2.2% to 51,307.65, an all-time high, at the close in Tokyo.

The Topix index fell 0.2% to 3,278.24.

Of the 1,671 stocks in the index, 204 rose and 1,447 fell, while 20 were unchanged.

Advantest was the Nikkei's best performer, rising 22%, the most on record, after raising its profit outlook and posting better-than-expected quarterly results. The chip tester maker added ¥1,077 to the Nikkei, which was up ¥1,088 overall as of 3:30 p.m.

Fujikura, Mitsubishi Electric, and Hitachi were also among the top gainers, after being named on a list of Japanese companies interested in investing in AI- and energy-related projects in the US. The details were revealed during US President Donald Trump's visit to Tokyo.

"US investment is a key topic right now, and companies involved in investment projects, especially around AI-related power supplies, are performing well," said Hiroshi Namioka, chief strategist at T&D Asset Management. Advantest's earnings added to the excitement in the tech sector, he said.

Read: Advantest Shares Rise After Earnings Outlook Upgrade: Market Summary

"It appears that Japan-US investment has replaced the 'Takaichi trade' as the main driver of stock sentiment," Namioka said.

In contrast, the Topix Index weakened, with the automotive, services, and trading companies weighing on the index.

"Sectors not included in the US investment plan appear to be struggling today," Namioka said. "The strengthening yen is also bad news for exporters." (asd)

Source: Newsmaker.id