Japanese stocks are higher in early trade as hopes for artificial intelligence-related demand continue. Heavy industry, construction and chemical stocks are leading the gains. Kawasaki Heavy Industries is up 4.7%, Taisei is up 3.1% and Shin-Etsu Chemical is 3.6% higher. The dollar is at 161.55 yen, compared with Y160.98 as of Friday's Tokyo stock market close. Investors are closely watching developments in the Iran conflict and crude oil prices. The Nikkei Stock Average is up 0.7% at 70227.26. (kosaku.narioka@wsj.com; @kosakunarioka)