Japanese stocks opened higher in early trade, buoyed by optimism for expanding demand tied to artificial intelligence, even as uncertainty over the Iran conflict lingers.

Chip stocks were the main drivers of the climb. Renesas Electronics gained 2.5% while Lasertec surged 6.5%, reflecting investor confidence in the AI build‑out.

Alphabet increased its estimate for this year’s capital expenditures by $15 billion, and the dollar traded at 163.11 yen against the Japanese currency, a slight rise from Wednesday’s close.

Market participants are also closely monitoring developments in the Middle East and crude oil prices after President Trump threatened to destroy Iranian infrastructure if Iran attacks vessels transiting the Strait of Hormuz, adding a geopolitical layer to the day’s trade. The Nikkei Stock Average finished up 0.6% at 66519.40.