Nikkei recovers, but Advantest drags despite Nvidia's strong growth
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Japan’s Nikkei 225 ended higher on Thursday, rebounding from the previous session’s decline, though gains were limited by weakness in chip-related stocks. The index rose 0.3% to close at 38,256.17, while the broader Topix climbed 0.73% to 2,736.25.
Markets had been anticipating Nvidia’s earnings to provide a boost, particularly for Japan’s semiconductor sector. While Nvidia delivered strong results, the reaction was muted. “Nvidia reported firm results, but the market was not overjoyed,” noted Yusuke Sakai, a senior trader at T&D Asset Management.
Chip-related stocks, which are crucial drivers of the Nikkei, had a mixed performance. Tokyo Electron, a key chip-making equipment manufacturer, gained nearly 1%, providing the biggest lift to the index. However, chip-testing equipment maker Advantest, a major supplier to Nvidia, erased early gains and slumped about 2%, becoming the biggest drag on the Nikkei. The stock remains highly sensitive to broader market trends and fluctuations in semiconductor sentiment.
On the positive side, Socionext soared 12.69%, making it the Nikkei’s top percentage gainer after announcing a partnership with Google Quantum AI.
Elsewhere, corporate developments influenced major stock moves. Seven & I Holdings plunged 11.69% after the founding Ito family failed to secure financing for a $58 billion management buyout. This opens the door for a competing bid from Canada’s Alimentation Couche-Tard. Meanwhile, Itochu surged 4.34% after announcing it would not participate in the buyout proposal.
Nissan Motor jumped 3.65% following reports that the automaker is considering replacing CEO Makoto Uchida. The speculation comes amid a downturn in Nissan’s business performance and the collapse of merger talks with Honda.
Despite the Nikkei’s recovery, sentiment remains cautious, particularly in the semiconductor sector, where investors are waiting to see how Nvidia’s stock reacts before making further moves.
Markets had been anticipating Nvidia’s earnings to provide a boost, particularly for Japan’s semiconductor sector. While Nvidia delivered strong results, the reaction was muted. “Nvidia reported firm results, but the market was not overjoyed,” noted Yusuke Sakai, a senior trader at T&D Asset Management.
Chip-related stocks, which are crucial drivers of the Nikkei, had a mixed performance. Tokyo Electron, a key chip-making equipment manufacturer, gained nearly 1%, providing the biggest lift to the index. However, chip-testing equipment maker Advantest, a major supplier to Nvidia, erased early gains and slumped about 2%, becoming the biggest drag on the Nikkei. The stock remains highly sensitive to broader market trends and fluctuations in semiconductor sentiment.
On the positive side, Socionext soared 12.69%, making it the Nikkei’s top percentage gainer after announcing a partnership with Google Quantum AI.
Elsewhere, corporate developments influenced major stock moves. Seven & I Holdings plunged 11.69% after the founding Ito family failed to secure financing for a $58 billion management buyout. This opens the door for a competing bid from Canada’s Alimentation Couche-Tard. Meanwhile, Itochu surged 4.34% after announcing it would not participate in the buyout proposal.
Nissan Motor jumped 3.65% following reports that the automaker is considering replacing CEO Makoto Uchida. The speculation comes amid a downturn in Nissan’s business performance and the collapse of merger talks with Honda.
Despite the Nikkei’s recovery, sentiment remains cautious, particularly in the semiconductor sector, where investors are waiting to see how Nvidia’s stock reacts before making further moves.