Key Points:
- Nikkei 225 closed at 38,082.96, reflecting a mild recovery after previous declines.
- Chip stocks showed mixed performance, with Advantest weighing on the index despite Nvidia’s strong forecast.
Tight Range Keeps Nikkei on the Side
The Nikkei 225 rebounded slightly on Wednesday, closing at 38,082.96, up 0.06% from the open at 38,061.59. The index briefly touched a high of 38,486.96 before pulling back, reflecting a cautious market tone.
Despite strong earnings from Nvidia, which initially boosted sentiment in the tech sector, Japanese chip-related stocks struggled to sustain gains. Advantest (6857.T), a key supplier to Nvidia, fell 1.27%, becoming the biggest drag on the Nikkei. Tokyo Electron (8035.T) edged up 0.81%, helping to counterbalance losses. Meanwhile, Socionext jumped 7.47%, emerging as the day’s top gainer.
Corporate headlines also influenced market movements. Seven & I Holdings (3382.T) tumbled 11.47% after announcing that its founding Ito family failed to secure financing for a proposed $58 billion management buyout. In contrast, Itochu (8001.T) gained 5.55% after withdrawing its participation in the deal.
Among automakers, Nissan Motor (7201.T) surged 4.81%, following reports that the company is considering replacing CEO Makoto Uchida after its failed merger talks with Honda Motor (7267.T).
While Nvidia’s earnings fueled early optimism, muted moves in U.S. stock futures weighed on Japanese equities, limiting upside momentum. The Nikkei’s recovery remains fragile, with investors closely watching U.S. tech performance and domestic policy developments for further direction.
Nikkei Trends Sideways
The Nikkei 225 is trading slightly higher with a 0.06% gain, opening at 38,061.59 and closing at 38,082.96. The index hit a high of 38,377.96 before pulling back, while the low was 38,051.46, showing some intraday volatility. Short-term moving averages (5, 10, 30) suggest mixed momentum, with the price consolidating just above key levels. The MACD remains near neutral, with the histogram flattening, indicating a potential slowdown in momentum.
Looking ahead, support is found at 37,686.96, with a break below signalling a deeper pullback. On the upside, resistance is near 38,486.96, where previous selling pressure emerged. If the index holds above 38,000 and builds momentum, another attempt toward 38,500+ could be on the horizon. Traders should monitor global equity sentiment, U.S. economic data, and yen movements, as these factors will influence further price action.
