Japan's Nikkei rises as tech earnings overshadow Mideast concerns
- The benchmark Nikkei 225 Index rose 0.47% to 59,416.49
TOKYO: Japan’s Nikkei share average rose on Friday, and was poised for a third consecutive weekly gain, as enthusiasm over technology sector earnings offset uncertainty over a potential peace deal in the Middle East.
The benchmark Nikkei 225 Index rose 0.47% to 59,416.49, while the broader Topix slid 0.04% to 3,714.85.
The Nikkei briefly broke through the psychologically key 60,000 mark for the first time on Thursday, more than recouping all its losses since the war broke out in Iran almost two months ago and spread around the region.
Lebanon and Israel extended their ceasefire for three weeks after a high-level meeting at the White House, U.S. President Donald Trump said on Thursday. Trump also said the U.S. would not use a nuclear weapon against Iran, following the extension of a ceasefire with Tehran earlier in the week.
Overnight, chipmaker Intel forecast second-quarter revenue that beat Wall Street expectations as demand surges for the company’s server processors used for artificial intelligence in data centres. Ibiden, a Japanese supplier to Intel, soared 12.7% in Tokyo, leading gains on the Nikkei.
“Today’s Japanese stock market is being driven upward by a sense of relief regarding the situation in the Middle East, along with continued expectations of earnings growth from the expanding AI sector,” said Wataru Akiyama, an equities strategist at Nomura Securities.
There were 103 advancers on the Nikkei index against 121 decliners. After Ibiden, the steepest gainers were tech sector suppliers NEC, gaining 6.8%, and Ajinomoto, which jumped 5.7%.
Canon was among the steepest decliners on the Nikkei, losing 6.6%. After the bell on Thursday, the company announced a downward revision to its earnings forecast.
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