The Nikkei stock benchmark gained after a three-day holiday as Tokyo’s market caught up with a global AI-led rally. Climbing bond yields and a rise in oil prices weighed on broader risk appetite. The Nikkei 225 rose 1.8% to 66,167.25 as of 10:09 a.m. in Tokyo, while the broader Topix rose 0.2% to 4,097.42. Chip-related firms like Ibiden Co. and Socionext Inc. were among the Nikkei’s best performers, while software names like Baycurrent Inc. and Recruit Holdings Co. weighed.

While Japan was closed for its Silver Week holiday, the global AI trade gathered steam thanks to early signs of success for Meta Platforms Inc.’s new AI agent and Alibaba Group Holding Ltd.’s unveiling of what it calls China’s most powerful AI chip. The Nasdaq 100 hit a fresh record high on Tuesday, although US equities pared gains on Wednesday amid inflation concerns.

“We expect the semiconductor-heavy Nikkei 225 to take cues from the strength in global technology stocks,” said Hu You, a senior research analyst at i Fast Financial in Singapore. But volatility in the yen, around 158 to the dollar, and climbing bond yields may keep investors cautious.