Japanese Shares Gain on Advantest Earnings

The Nikkei 225 Index advanced 1.1% to close at 64,659 on Thursday, extending its gains to a third consecutive session as strong earnings from chip-testing equipment maker Advantest boosted market sentiment. Advantest shares surged 6% after the company raised its full-year earnings forecast, citing stronger-than-anticipated demand for equipment used to test artificial intelligence chips. Other major technology stocks also advanced, with Kioxia gaining 1.2%, Ibiden rising 2%, and Tokyo Electron climbing 2.4%. However, disappointing earnings from Alphabet and Samsung Electronics reignited concerns over the sustainability of AI-related investments, limiting the broader market’s gains. Investors also turned their attention to the Bank of Japan’s upcoming policy meeting, where officials are widely expected to maintain current interest rates while potentially signaling a rate hike in December amid persistent inflationary pressures.

The Nikkei 225 Index rose 640 points or 1.00 percent on Thursday to close at 64595 points. Leading the gains are Nisshin Seifun (6.73%), Advantest (5.87%) and Furukawa Electric (5.33%).

Asian equity markets mostly declined on Thursday as disappointing results from major technology companies reignited concerns over the sustainability of heavy investments in artificial intelligence. Shares of Alphabet, Google’s parent company, plunged nearly 10% in after-hours trading after reporting weaker-than-expected third-quarter revenue across most of its core businesses, which help finance its AI spending. Meanwhile, South Korean chipmaker Samsung Electronics fell more than 5% after its results failed to meet lofty investor expectations. The Kospi Index, a key gauge of sentiment toward AI-related stocks, dropped around 3%, while benchmark indexes in Japan, China, and Hong Kong also came under pressure. On the monetary policy front, the US Federal Reserve kept interest rates unchanged in a widely anticipated decision, although two policymakers dissented in favor of a rate hike, adding to uncertainty over the future policy outlook.