Japan’s Nikkei Stock Average Rises as Nvidia’s AI China News Lifts Chip-Related Shares (UPDATE 1)

Reuters

12:33 JST, July 15, 2025 (updated at 16:30 JST)

TOKYO, July 15 (Reuters) – Japan’s Nikkei ended higher on Tuesday as chip stocks rallied after Nvidia’s plan to resume AI chip sales in China, with the benchmark shrugging off early caution over U.S. price data and the election outcome.

The Nikkei .N225 closed 0.55% higher at 39,678.02, after falling as much as 0.2% earlier in the session.

“Investors weighed U.S. price data due later in the day and the national election outcome earlier in the session,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.

“But the news on Nvidia lifted Japan’s chip-related stocks, which boosted the Nikkei.”

AI chip giant NvidiaNVDA.O said it will resume sales of its H20 graphics processing unit (GPU) chips to China and expects to get U.S. government license soon.

Shares of chip-making equipment maker Tokyo Electron rose 3.49% to become the biggest source for the Nikkei’s gains.

Chip-testing equipment maker Advantest 6857.T reversed course to end 1.78% higher.

Cable makers, which are the gauge for the data center investments, jumped, with Furukawa Electric 5801.T climbing 6.49% to become the top percentage gainer. Fujikura 5803.T gained 3.95%.

The broader Topix .TOPX edged 0.09% higher to 2,825.31.

Global investors also await U.S. consumer price data for June, due later in the day, and will monitor for any upward pressure on prices from tariffs.

In Japan, markets are wary of a potential defeat for the Liberal Democratic Party and its coalition partner Komeito in the upcoming upper house election on July 20.

A defeat could empower opposition parties that have pledged in their campaign platforms to cut or abolish the sales tax.

Air-conditioning maker Daikin Industries 6367.T lost 2.6%, becoming the biggest drag on the Nikkei.