Japan's Nikkei rises 2% as AI stocks rally, Middle East worries cap gains

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Japan’s Nikkei index recorded an upward trend thanks to strong performances in AI and semiconductor stocks. Companies like Advantest and Tokyo Electron saw notable increases, while Recruit Holdings enjoyed a boost after surpassing market expectations with revised projections. Nevertheless, concerns regarding the Middle East and forecasts from a battery materials producer restrained further growth. Investor caution prevailed amidst the Obon holidays and scarce market indicators.