Japanese shares concluded the trading session on Thursday (Aug 13) with gains, as the Topix reached an unprecedented peak. This upward movement was driven by chip-related stocks mirroring the performance of their US counterparts, alongside a strong earnings forecast for domestic companies that bolstered market sentiment. The Nikkei increased by 1.16 percent to 68,308.59, whereas the broader Topix advanced by 0.86 percent, achieving a record high close of 4,176.04, thereby extending its gains for a seventh consecutive session. The S&P 500 and the Nasdaq concluded the trading session on Wednesday with gains, buoyed by positive quarterly earnings from CoreWeave and other companies in the AI infrastructure sector.
Additionally, moderate inflation figures bolstered expectations that the US Federal Reserve will maintain interest rates at their current levels in September. The PHLX Semiconductor Index advanced approximately 2.5 percent. “When the SOX index rises, Japanese chip-related shares follow, and Advantest is the symbol of that today,” stated Kazuaki Shimada. Chip-testing equipment manufacturer Advantest experienced an increase of 4.02 percent, whereas Ibiden, a supplier to the prominent AI company Nvidia, rose by 5.27 percent.
Murata Manufacturing, a prominent producer of multi-layer ceramic capacitors utilised for power regulation in AI servers, experienced an increase of 10.25 percent. What distinguishes the current rallies of Japanese stocks from previous ones is that investors are purchasing both value and growth stocks. “That is supported by a strong corporate outlook,” Shimada stated. Toppan Holdings surged 10.78 percent, emerging as the largest percentage gainer on the Nikkei, following the announcement that its first-quarter net profit more than doubled compared to the previous year.
Banks, emblematic of value stocks, experienced an uptick, with Mitsubishi UFJ Financial Group and Mizuho Financial Group advancing by nearly 3 percent each. Among the companies listed on the Topix with fiscal years concluding in March, approximately 18 percent increased their annual recurring profit projections in the first quarter, while only 2 percent revised their forecasts downward, as reported by Shimada. Of the more than 1,500 stocks trading on the Tokyo Stock Exchange’s prime market, 64 percent experienced an increase, 32 percent saw a decline, and 3 percent remained unchanged.
