Japan’s Nikkei share average rose on Thursday, led by a sharp rally in CPU-related stocks after Meta Platforms unveiled a new handheld device, while rising bond yields weighed on financial shares, Reuters reported.

The Nikkei gained 1.33% to 65,883.41 by the midday break, while the broader Topix edged up 0.12% to 4,096.01.

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Japanese markets had been closed until Wednesday due to public holidays, making Thursday the first full trading session of the holiday-shortened week.

Ibiden surged 15.47% after Meta CEO Mark Zuckerberg unveiled Meta Charm, a handheld device designed to use the company’s new Muse artificial intelligence assistant. The announcement boosted demand for companies linked to CPU and semiconductor components, Reuters reported.

Socionext, Meiko Electronics and Ushio Inc each gained more than 10%, making them, along with Ibiden, four of the five biggest gainers on the Tokyo Stock Exchange’s Prime Market.

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According to Reuters, the rally in CPU-related shares reflected investor enthusiasm over potential demand for components linked to Meta’s new device.

Chip-testing equipment maker Advantest rose 4.09%, providing the biggest boost to the Nikkei. SoftBank Group edged up 0.52%.

The gains in technology stocks came despite a rise in Japanese government bond yields. The 10-year government bond yield climbed to 3.055%, its highest level since August 1996, following a selloff in U.S. Treasuries.

Investors were also weighing renewed inflation concerns as the yen weakened against the dollar overnight, Reuters reported.

Higher yields pressured bank stocks, weighing on the Topix. Mitsubishi UFJ Financial Group fell 1.08%, Sumitomo Mitsui Financial Group declined 1.60% and Mizuho Financial Group slipped 2.02%.

The TSE’s value share index fell 0.2%, while the growth stock index gained 0.48%.

Among more than 1,500 stocks traded on the TSE’s Prime Market, 53% advanced, 43% declined and 3% were unchanged.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)