Tokyo: Nikkei Stock Average climbed more than 1,000 points on Wednesday as easing US inflation and renewed buying in technology stocks lifted investor sentiment.

The benchmark 225-issue Nikkei Stock Average gained 1,008.01 points, or 1.49%, to close at 68,751.51. The broader Topix Index also advanced 49.14 points, or 1.22%, to finish at 4,088.12.

Investors bought a broad range of shares after Wall Street rallied overnight, with heavyweight technology companies leading the gains.

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Nonferrous metals, securities firms, and glass and ceramics companies recorded the strongest performance on the Tokyo Stock Exchange’s Prime Market.

The US dollar traded mostly in the lower 162-yen range as investors bought the Japanese currency after fresh US inflation data showed consumer prices rose more slowly in June. The weaker inflation reading eased concerns about further interest rate increases by the US Federal Reserve.

Wataru Akiyama, a strategist at Nomura Securities, said strong demand for artificial intelligence and semiconductor-related companies supported the market and helped drive the Nikkei higher.

Stocks briefly erased most of their gains during morning trading as investors locked in profits, while renewed concerns over tensions in the Middle East weighed on market sentiment.

However, buyers returned after Dutch semiconductor equipment maker ASML Holding reported stronger-than-expected second-quarter earnings and issued an optimistic business outlook, giving fresh momentum to technology shares.