TOKYO (June 25): Japan's Nikkei share average jumped more than 3.5% on Thursday as AI-related shares surged after US memory chipmaker Micron's upbeat quarterly profit and revenue forecast.

The Nikkei was up 3.72% at 71,754.53, as of 0159 GMT, set to snap two consecutive sessions of declines, if the current momentum holds. The broader Topix rose 1.34% to 4,016.71.

The recent downturn in tech-heavy Nikkei followed a sharp decline in semiconductor firm SK Hynix earlier this week.

Micron, a key supplier for Nvidia AI processors alongside South Korean chipmakers, forecast quarterly profit and revenue well above expectations and said customers had committed US$22 billion to secure memory chip supply, sending its shares surging 12% in after-hours trade on Wednesday.

Shares of SK Hynix, also a supplier to Nvidia, rose as much as 11.1% in early morning trade on Thursday.

"The Nikkei's sharp gain is simply due to Micron's earnings," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

"The US semiconductor index, which is highly correlated with the Nikkei, will probably rise later in the day."

On Thursday, chip-testing equipment maker Advantest jumped 11.8% and chip-making equipment maker Tokyo Electron was up 7.9%.

Shares of memory maker Kioxia rose 9%.

Makers of AI-data centre materials advanced: Murata Manufacturing and Taiyo Yuden climbed 6.35% and 11%, respectively.

Defying the broader strength, energy sectors fell after oil prices extended declines. The mining sector dropped 3.2%, with Inpex down 3.53%, while oil refiners edged 0.11% lower.

Japanese shippers also slipped, with Kawasaki Kisen down 3%, while the sector index lost nearly 2%.

Of more than 1,500 stocks on the Tokyo Stock Exchange's prime market, 74% rose, 21% fell and 3% were flat.

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