Japan’s Nikkei Hits Closing High as Nvidia Earnings Boost Tech (UPDATE 1)
12:52 JST, May 23, 2024 (updated at 16:15 JST)
TOKYO (Reuters) – Japan’s Nikkei share average rose on Thursday tofinish at more than a one-month closing high as technology stocks rallied after U.S. 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 U.S. 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 endup1.26% at 39,103.22, its highest closing level since April 15.
The broader Topix closed 0.64% higher at 2754.75.
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.
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%mark on Wednesday, renewing concerns in the wake of the BOJ’s recenthawkish signals, including an unexpected cut toits 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% to contribute about 78 points to the Nikkei’s 486-point gain.
AI-focused startup investor SoftBank Group, up 4.3%, and chip-making equipment giant Tokyo Electron, climbing 1.8%, together added nearly134 points.
Chip equipment manufacturers Disco Corpand Lasertec also surged, gaining 8% and 6.3%, respectively.
Among decliners, videogame maker Nexon slid 5.6% to the bottom of the pack, while Chugai Pharmaceutical lost 1.2%. Fellow pharmaceutical firm Daiichi Sankyo was down 0.9%.
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