Japan's Nikkei average closes above 40,000, led by booming chip stocks

TOKYO -- Japan's benchmark Nikkei Stock Average reached the key milestone of 40,000 on Monday, mainly led by gains in semiconductor stocks, which have been boosted by expectation of higher demand for generative artificial intelligence.

The index closed up 198.41 points, or 0.5%, from Friday's close, at 40,109.23. Semiconductor-related stocks such as equipment makers Tokyo Electron and Advantest led the gain, rising 2.4% and 3.7% respectively.