TOKYO: Japan’s Nikkei share average rose on Wednesday, as investors scooped up SoftBank Group and other technology stocks after US President Donald Trump announced a private sector investment of up to $500 billion to fund AI infrastructure.

The Nikkei had risen 1.48% to 39,604.71 by the midday break.

Earlier in the day, it hit its highest level since Jan. 9 at 39,647.83.

Trump said that ChatGPT’s creator OpenAI, SoftBank Group and Oracle are planning a joint venture called Stargate, which he said will build data centres and create more than 100,000 jobs in the United States.

“Today’s market is dominated by the news about Trump’s AI investment announcement. Investors have already shrugged off concerns about his tariff plans and instead focused on positive elements,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

SoftBank Group jumped 9%, providing the biggest boost to the Nikkei.

Chip-testing equipment maker Advantest , a supplier to Nvidia, rose 3.94% and chip-making equipment maker Tokyo Electron gained 2.31%.

Makers of materials for data centres also rose, with Furukawa Electric and Fujikura surging 12% each to become the top gainers on the Nikkei.

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The broader Topix rose 0.94% to 2,738.91, posting a smaller gain than the Nikkei as financial stocks fell. Insurer Tokio Marine Holdings fell 1.2% and Dai-ichi Life Holdings lost 0.96%.

Banks fell, with Mizuho Financial Group and Sumitomo Mitsui Financial Group slipping 0.23% and 0.32%, respectively.

Topix’s growth index rose 1.22%, while the value share index gained 0.67%.

Of the more than 1,600 shares trading on the Tokyo Stock Exchange’s prime market, 65% rose and 30% fell, with 3% flat.