Japan's Nikkei share average rose more than three per cent on Wednesday, up 3.16 per cent to 65,979.02 as of 0101 GMT, as AI-related stocks jumped to track US peers and investors scooped up stocks with a strong outlook. The broader Topix rose 1.52 per cent to 4,022.18. The S&P 500 and the Dow closed at record highs on Tuesday, powered by earnings from AI-related companies such as Caterpillar and Palantir, while crude prices and Treasury yields dropped on hopes for a deal in the Iran war. Chip-testing equipment maker Advantest and chip-making equipment maker Tokyo Electron rose 8 per cent and 4 per cent, respectively, tracking the Philadelphia Semiconductor index's 6.6 per cent gain overnight. Murata Manufacturing jumped 8.33 per cent after raising its annual net profit forecast. "Compared with the past, more companies raised their annual outlook in the first quarter, which means they had made modest forecasts due to the impact of the Middle East war," said Daisuke Hashizume, a senior strategist at Daiwa Securities. Fanuc rose 3.67 per cent after the robot maker raised its annual net profit forecast. Bank shares rose, with Mitsubishi UFJ Financial Group and Mizuho Financial Group up more than one per cent each. Fast Retailing fell 1.82 per cent, and Daikin Industries fell 8 per