Japan’s Nikkei share average ended a six-session decline on Friday, buoyed by a rebound in artificial intelligence-related shares. However, the extent of the gains was tempered by a prevailing caution in anticipation of upcoming corporate earnings reports and the US midterm elections. The Nikkei rose 1.39 per cent to 65,324.29 following a nearly five per cent decline in the prior session. The index experienced a decline of 5.37 percent over the course of the week. The broader Topix increased by 1.67 percent to 4,066, yet experienced a decline of 0.95 percent over the week. “The shares rebounded as investors bought back stocks after sharp losses in the previous session… there were no other factors for the gains,” said Daisuke Hashizume.
“Market players see little reason to buy shares aggressively ahead of the release of corporate earnings and the US midterm elections next month.” Markets are closely observing the potential implications of the election results on US President Donald Trump’s proposals for US$5,000 payouts to adults and increased military expenditure, according to Hashizume. In Japan, chip-making equipment manufacturer Tokyo Electron experienced an increase of 2.56 percent, while memory chip producer Kioxia saw a gain of 3.84 percent. Additionally, technology investor SoftBank Group rose by 1.9 percent.
Chip-testing equipment maker Advantest recovered from initial declines to close with a gain of 0.55 percent. BayCurrent surged 17.25 percent to become the top percentage gainer on the Nikkei after the consulting firm announced its intention to utilise excess cash for investments and share buybacks. Banks bolstered the Topix, as Mitsubishi UFJ Financial Group and Mizuho Financial Group experienced increases of 1.82 per centand 1.72 per cent, respectively. Among the over 1,500 stocks listed on the Tokyo Stock Exchange’s prime market, 83 percent experienced an increase, 14 percent saw a decline, and two percent remained unchanged.
