Japan’s Nikkei share average ended higher on Wednesday, following an overnight rally in Wall Street’s semiconductor stocks. Nvidia’s impressive performance helped push Japan’s technology shares upward in the morning.
Nvidia, which surpassed Microsoft to become the world’s most valuable company overnight, had a observable impact. The Philadelphia Semiconductor Index also climbed over 1%, boosting sentiment.
See: Nikkei trades higher as seen on the VT Markets app.
The Nikkei closed 0.23% higher at 38,570.76, while the broader Topix index finished up 0.47% at 2728.64. This positive movement came after some concerns about political risk in Europe had weighed on the market last week.
However, the stabilisation of US and European shares, along with Nvidia’s strong performance, improved market sentiment at the start of this week.
Despite the positive start, profit-taking in the afternoon limited Nikkei’s gains. The US markets were closed on Wednesday for a public holiday, leading to lighter trading volume and sending the index into negative territory at times.
Also read: Japan’s Nikkei climbs as investors snap up shares following sharp decline
Mitsubishi Motors emerged as the top gainer on the Nikkei, jumping about 9%.
This surge followed comments from the auto firm’s president in an interview with the Nikkei newspaper, suggesting the company might buy back shares for the first time in 18 years and increase shareholder returns in fiscal year 2025.
Technology sector boosted by Nvidia and Advantest
Picture: Nvidia trading at 136.26 as seen on the VT Markets app.
In the technology sector, chip-testing equipment maker Advantest, which counts Nvidia among its customers, climbed 4.1%, adding 57.5 points to the Nikkei’s near 89-point gain. AI-focused startup investor SoftBank Group also gained 1%.
On the downside, cosmetic company Shiseido slid 4.8%, reflecting sector-specific pressures.Traders should watch for further developments in global markets and specific company announcements that could influence the Nikkei.
The recent rise in semiconductor stocks and potential strategic moves by companies like Mitsubishi Motors and Advantest indicate areas of opportunity.
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