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Japan’s Nikkei share average rose on Thursday (May 23) to finish at more than a one-month closing high as technology stocks rallied after US peer Nvidia’s earnings delivered on sky-high expectations.
Markets were not disappointed in the week’s most closely watched event, with Nvidia hitting a record high after the US chipmaker forecasted quarterly revenue above estimates on Wednesday and announced a stock split.
“Nvidia earnings were better than expected. So that was definitely positive for Japanese tech stocks, especially semiconductor-related companies,” said Kenji Abe, equities analyst at Daiwa Securities.
Japan’s tech shares rallied on the news, buoying the Nikkei share average to end up 1.26 per cent at 39,103.22, its highest closing level since April 15.
The broader Topix closed 0.64 per cent higher at 2,754.75.
Chip-related shares have been among the Nikkei’s best performers over the past year, helping the benchmark index climb to a record intraday high of 41,087.75 in March.
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Gains were more subdued outside of tech on Thursday as investors remained cautious regarding the Bank of Japan’s policy path, analysts said.
Japan’s 10-year government bond yield rose to the psychologically significant 1 per cent mark on Wednesday, renewing concerns in the wake of the BOJ’s recent hawkish signals, including an unexpected cut to its bond offer amounts last week.
Positive sentiment picked up in the afternoon session, however, with 145 of the benchmark index’s 225 constituents advancing.
On Thursday, Advantest, which counts Nvidia among its customers, jumped 5.4 per cent to contribute about 78 points to the Nikkei’s 486-point gain.
AI-focused startup investor SoftBank Group, up 4.3 per cent, and chip-making equipment giant Tokyo Electron, climbing 1.8 per cent, together added nearly 134 points.
Chip equipment manufacturers Disco Corp and Lasertec also surged, gaining 8 per cent and 6.3 per cent, respectively.
Among decliners, videogame maker Nexon slid 5.6 per cent to the bottom of the pack, while Chugai Pharmaceutical lost 1.2 per cent. Fellow pharmaceutical firm Daiichi Sankyo was down 0.9 per cent. REUTERS
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