Nikkei rises 1.25% and heads for biggest weekly gain in five months

Japan’s Nikkei rose 1.25% to 61,576.91 by 7:10 AM IST on Friday and was on course for a 7.3% weekly gain, its largest in five months, Reuters reported. The move followed a sharp decline in the previous week and came as corporate earnings and renewed interest in artificial intelligence shares supported Japanese equities. Uncertainty remained around Nvidia’s reported leadership development and its possible implications for United States chip export restrictions and access to the Chinese market.

Nikkei weekly gain reaches 7.3% after 1.25% rise

Reuters reported that the Nikkei stood at 61,576.91 after rising 1.25% by 7:10 AM IST on Friday. The index was on course for a 7.3% gain for the week, which would be its strongest weekly performance since the week of 15 June.

The broader Topix reached 3,962.08 after rising 0.63% by 7:10 AM IST, Reuters reported. Its weekly gain was around 7%, which would be its biggest since mid-August 2024.

Semiconductor shares lead as Advantest rises 5.9%

Advantest rose 5.9%, Tokyo Electron gained 3% and Kioxia added 2.9%, according to Reuters.

Amada was the biggest percentage gainer in the Nikkei 225, rising 9.46%. Socionext gained 6.77% and Trend Micro advanced 6.61%, Reuters reported.

Terumo was the biggest decliner, falling 7.39%. Haseko fell 6.12% and Mercari declined 3.68%. The Nikkei 225 had 138 advancing stocks, 82 decliners and five unchanged stocks, Reuters reported.

Banking stocks on Tokyo exchanges gained around 1% as United States Treasury yields rose, Reuters reported.

Nvidia uncertainty remains alongside the AI share recovery

The Nikkei’s advance came after an overnight sell-off in Nvidia shares weighed on United States equities, Reuters reported. Broadcom and Alphabet recorded gains during the same period, alongside continued interest in the wider artificial intelligence sector.

Maki Sawada, an equities strategist at Nomura Securities, attributed part of the weekly gains in the Nikkei and Topix to the recovery in semiconductor and artificial intelligence-related shares.

Reuters reported uncertainty surrounding Nvidia CEO Jensen Huang’s reported departure, including the company’s future direction and the possible implications for United States chip export restrictions and access to the Chinese market.

Friday’s advance followed a decline in the previous session

Japanese equities weakened in the previous session amid concerns about the Nvidia developments, Maki Sawada said, according to Reuters.

The Nikkei was rebounding from a sharp decline in the previous week, Reuters reported.

Japan’s three largest banks were scheduled to report earnings

Japan’s three largest banks were scheduled to announce their earnings later on Friday, Reuters reported.