TOKYO, Aug. 5 (Xinhua) -- Tokyo stocks closed higher on Wednesday, with the benchmark Nikkei stock index jumping more than 3 percent, as artificial intelligence- and semiconductor-related shares rallied on expectations of demand growth. Market sentiment was also boosted by hopes that the United States and Iran could soon reach a deal to reopen the Strait of Hormuz.

The 225-issue Nikkei Stock Average ended up 2,342.91 points, or 3.66 percent, from Tuesday at 66,300.44.

The broader Topix index, meanwhile, finished 84.39 points, or 2.13 percent, higher at 4,046.17.

On the top-tier Prime Market, nonferrous metal, information and communication, and glass and ceramics product issues were notable gainers.

Stocks rose, tracking overnight gains on Wall Street after U.S. Treasury Secretary Scott Bessent said the United States and Iran could reach a deal soon to reopen the Strait of Hormuz. The remarks sent West Texas Intermediate crude oil futures down to near 75 U.S. dollars per barrel.

AI- and chip-related shares advanced, buoyed by strong earnings reports from major U.S. and Japanese companies, analysts said.