Japan’s Nikkei share average closed higher on Friday, achieving its most significant weekly gain in five months. This increase was driven by positive earnings reports and a resurgence of optimism surrounding AI, allowing the market to rebound from the sharp selloff experienced the previous week, even amidst concerns related to Nvidia. The Nikkei rose 0.53% to close at 61,142.35, posting a weekly gain of 6.46%, marking its best week since the week ended June 15.
The broader Topix advanced 0.11% to 3,941.57, marking a weekly gain of 6.3%, its strongest since mid-August 2024. The market experienced an uptick, even in the face of an overnight selloff in Nvidia shares that exerted downward pressure on US stocks. Gains in Broadcom and Alphabet, however, indicated sustained investor confidence in the broader AI sector. Semiconductor stocks experienced an uptick in the early trading session; however, some of these gains were subsequently reduced by the market’s close, coinciding with a decline in South Korean equities.
Advantest experienced an increase of 2.08%, and Tokyo Electron saw a rise of 1.69%, whereas SoftBank Group faced a decline of 5.11%. “The rise in semiconductor- and AI-related shares, which had been under pressure for a relatively long period, appears to have been a factor behind this week’s gains in the Nikkei average and Topix,” said Maki Sawada. Nvidia CEO Jensen Huang’s departure has raised questions regarding the company’s future trajectory and the potential ramifications for US chip export policy and access to the Chinese market.
