Japanese equities extended gains on August 13 as softer U.S. inflation data fueled another round of buying in AI and semiconductor shares, lifting the Nikkei 225 1.16% to 68,308.59 and taking it back above 68,000 at a closing basis for the first time in about a month. TOPIX rose 0.89% to 4,176.04 for a second straight record close, while the Yomiuri 333 added 0.54% to 53,828.59, setting a fresh record high for the first time since July 6 and reinforcing the breadth of the rally. Advantest and other high-priced chip-related names led the Nikkei, while earnings-driven gains in stocks such as TOPPAN Holdings, Murata Manufacturing and Taiyo Yuden helped more than 60% of Prime Market issues advance; DMG Mori, Seibu Holdings and Sega Sammy Holdings were among the main decliners. Investors took comfort from a narrower year-over-year rise in July U.S. Consumer Price Index data, which eased concern over excessive inflation and reduced expectations of an imminent Federal Reserve rate hike, while strength in South Korea's semiconductor-heavy market also improved sentiment. Trading volume totaled 2.4035 billion shares, and attention is now shifting to the direction of U.S. monetary policy and whether domestic corporate earnings can continue to support the market.