TOKYO: Japan’s Nikkei share average rose on Wednesday, lifted by gains in Nvidia supplier Advantest, as investors awaited the US chipmaker’s outlook due before the Tokyo market opens on Thursday.
The Nikkei rose 0.32% to 42,529.95, by the midday break, after swaying between modest gains and losses during the session. The broader Topix fell 0.11% to 3,068.5.
“The market is focused on Nvidia’s outlook. Its results will probably beat market expectations, but the bar for Nvidia to satisfy the market with its outlook is high,” said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
“Any comments from the company could also become market-moving cues.” Nvidia is set to announce its quarterly report later in the day. The chipmaker’s report could fuel or dampen Wall Street’s rally in AI-related stocks, as well as Japan’s Nikkei, which is heavily weighted by chip-related stocks.
Advantest rose 3.48% to give the biggest boost to the Nikkei.
Camera maker Nikon surged 20.74% to 1,746.5 yen, a daily limit high, after Bloomberg reported EssilorLuxottica SA , the maker of Ray-Ban sunglasses, is exploring a potential deal to increase its stake in the company.
The market weighed the yen’s direction as expectations for the Federal Reserve’s interest rate cuts grew, said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“If the Bank of Japan raises its policy rate anytime soon, the yen, which has been trading within a range, could spike.
The market is worried about that move,“ said Kamada.
Automakers fell, with Toyota Motor and Honda Motor losing 0.31% and 0.425, respectively.
Bank shares fell, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group falling 0.79% and 0.51%, respectively.
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