Japan’s Nikkei Stock Average Snaps 4-Day Loss as Nvidia Outlook Boosts Tech Sector (UPDATE 1)　

Reuters

10:10 JST, November 20, 2025 (updated at 16:45 JST)

TOKYO, Nov 20 (Reuters) – Japan’s Nikkei share average rose on Thursday, snapping a four-day decline, after strong results from Nvidia NVDA.O eased valuation concerns over the artificial-intelligence sector.

The Nikkei 225 Index .N225 briefly climbed above the key psychological 50,000 figure before losing some momentum in the afternoon. The gauge closed up 2.7% at 49,823.94, while the broader Topix .TOPX gained 1.7%.

After the bell in New York, AI darling Nvidia forecast quarterly revenue well above analysts’ estimates.

Global markets have looked to the chip designer to determine whether investing billions of dollars in AI infrastructure expansion has resulted in an AI bubble.

Japanese suppliers and investors in the AI sector have been major drivers in powering the Nikkei gauge to all-time highs before a pause set earlier this month.

“Ahead of Nvidia’s results, there was heightened focus on whether AI-related profitability would justify massive infrastructure investments,” said Maki Sawada, a strategist at Nomura Securities. “Companies that had seen selling on profit-taking are now being bought back, leading to a sharp rebound in the Nikkei.”

There were 186 advancers on the Nikkei index against 38 decliners. AI-industry heavyweights Advantest 6857.T and Tokyo Electron 8035.T were the biggest contributors to the index’s advance.

Fujikura 5803.T, a major supplier of wire and cables to data centers, surged 5.9%. Shares of Sompo Holdings 8630.T surged 10.5% after the insurer announced a buyback of 77 billion yen ($490 million) of its own shares.

Tokyo Electric Power 9501.T was among the biggest decliners, losing nearly 4%, after the Asahi newspaper reported on mishandling of confidential documents at the utility, which aims to reopen its Kashiwazaki-Kariwa nuclear plant.