Mumbai, July 23 -- Japanese stock markets closed higher on Thursday, with the Nikkei 225 rising 0.46% to 66,422 and the broader Topix index gaining 0.51% to 4,054.

Technology and semiconductor stocks led the rally after strong quarterly results from Alphabet and its higher capital spending plans reinforced expectations of continued global investment in AI infrastructure. Japanese chip-related stocks tracked gains seen in US markets.

However, gains were limited as investors weighed the possibility of an earlier interest rate hike by the Bank of Japan. Market participants also kept a close watch on oil prices after reports that Iran-backed Houthi militants targeted two Saudi Arabian oil tankers in the Red Sea, raising concerns over global...