Japanese Shares Gain After Nvidia Earnings

The Nikkei 225 Index rose 0.3% to above 66,400 while the broader Topix Index gained 0.25% to 4,121 on Thursday, extending gains for a third straight session as Nvidia’s strong sales outlook provided fresh evidence that spending on AI infrastructure is likely to remain resilient. Japanese technology companies are deeply involved in the global AI infrastructure buildout, which has been a key driver of the country’s equity rally over the past year. Meanwhile, data released Wednesday showed US PCE prices rose more than expected in July and remained well above the Federal Reserve’s target, reinforcing hawkish expectations for US interest rates. Tech and AI-linked stocks led the gains, with notable advances from Kioxia Holdings (5%), Fujikura (2.6%), Ibiden Co (2.3%), Murata Manufacturing (2.6%) and Tokyo Electron (1%).

The Nikkei 225 Index fell 0.3% toward 66,000 while the broader Topix Index rose 0.4% to 4,128 in mixed trade on Thursday, as Japanese shares struggled for direction despite Nvidia’s robust sales outlook providing fresh evidence that spending on AI infrastructure is likely to remain strong. Japanese technology companies are deeply involved in the global AI infrastructure buildout, which has been a major driver of the country’s equity rally over the past year. Meanwhile, data released Wednesday showed US PCE prices rose more than expected in July and remained well above the Federal Reserve’s target, reinforcing expectations for a cautious outlook on US interest rates. Among individual stocks, notable gains came from Kioxia Holdings (6.4%), Fujikura (3.5%) and Ibiden Co (2.3%), while Advantest (-1.3%), Nintendo (-1%) and JX Advanced Metals (-0.8%) posted losses.

The Nikkei 225 Index rose 450 points or 0.68 percent on Wednesday to close at 66306 points. Leading the gains are Toho Zinc (6.24%), Mitsubishi Materials (5.70%) and Tokyo Electric Power (4.04%). Top losers were Sumco (-4.04%), Kawasaki Kisen (-3.16%) and Furukawa Electric (-2.80%).