TOKYO: Japan’s Nikkei share average ended at a three-week high on Wednesday, led by chip and defence stocks, while market participants keenly awaited the outcome of the US presidential election.

The Nikkei jumped 2.61% to 39,480.67, its highest closing level since Oct. 15. The index also posted its biggest daily gain since Sept. 26. The broader Topix ended 1.94% higher at 2,715.92. The Nikkei accelerated gains as the dollar strengthened against the yen. The dollar was last up 1.7% at 154.24.

A weaker yen tends to boost Japanese exporters’ overseas earnings when repatriated. “The market is looking ahead of the election outcome already, with the dollar gaining and Japanese stocks rising,” said Yugo Tsuboi, chief strategist at Daiwa Securities.

Donald Trump defeated Democrat Kamala Harris in the battleground states of North Carolina and Georgia, taking him closer to completing a stunning political comeback four years after he left the White House.

Japanese technology stocks rose, with chip-testing equipment maker Advantest jumping 8% to become the biggest boost to the Nikkei. Technology start-up investor SoftBank Group rose 5.13%.

Defence stocks also rose, with IHI surging 19.28% as the heavy machinery maker raised its annual net profit forecast for the fiscal year ending March 2025.

Peers Mitsubishi Heavy Industries and Kawasaki Heavy Industries jumped 9.85% and 7.34%, respectively. “This is a typical Trump trade,” said Takashi Hiroki, chief strategist at Monex, as Trump would ask Japan to rely less on the US for its own defence.