Japan's Nikkei rises as chip-related shares track US peers higher

"Chip shares lifted the Nikkei, but its gains were capped as investors sold stocks as soon as the index crossed a milestone," said Shuutarou Yasuda, a at , referring to the 39,000 level.

Tokyo Electron jumped 3.46% to provide the biggest boost to the Nikkei. Chip-testing equipment maker jumped 3.91%.

U.S. leapt 4.5% overnight, buoyed by gains to and .

Nvidia's market value hit the $3 trillion mark for the first time as the chipmaker overtook Apple to become the world's second-most valuable company.

"Until the market confirms policy path of central banks in the U.S., Europe and Japan, it will be hard to make active bets on stocks," Yasuda said.

The European Central Bank meets on Thursday, and markets price in an almost certain chance of a first rate cut. The and the Bank of Japan will hold their policy meetings next week.

The broader Topix rose 0.33% to 2,757,23.

Of the more than 1,600 stocks traded on the 's prime section, 36% rose while 59% fell, with 3% flat.

Technology investor jumped for a second straight session as activist investor rebuilt a stake worth more than $2 billion and called for a $15 billion share buyback.

But the stock erased most of its early gains to end up 1.39%.