Nikkei rises as Advantest’s higher profit forecast lifts chip stocks

TOKYO: Japan’s Nikkei share average rose on Thursday as Advantest’s higher profit forecast lifted chip-related stocks, while banks pulled down the broader Topix. The Nikkei rose 1. 28% to 62, 218. 41 by the midday break, while the Topix fell 0. 29% to 3, 962. 68. Advantest jumped 11. 49% after raising its annual operating profit forecast by 35% on Wednesday as AI spending drives demand for its chip-testing equipment. “Thanks to Advantest’s tremendous outlook, shares in other chip-related stocks rose, ” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities. Chip-making equipment maker Tokyo Electron rose 5. 32%. Memory maker Kioxia jumped 9. 41%. Shimada said global concerns over heavy spending on AI infrastructure outpacing revenue growth eased after Microsoft signalled its massive spending bets were paying off. Nasdaq and S&P futures were up 1% and 0. 5%, respectively, in Asian trading, signalling a potential rebound of US technology stocks later in the day, said Shimada. Wall Street ended sharply lower overnight after the Federal Reserve held interest rates steady, with AI-related chip stocks adding to recent declines ahead of quarterly reports from Microsoft and Meta Platforms. The Nasdaq 100 index marked an 11% drop from its June record high. In Japan, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group lost 3. 18% and 2. 15%, respectively. “This is a typical trend in recent sessions where AI-related shares are strong, value shares such as banks are sold off, ” said Shimada. Toyota Motor fell 1. 71%. System integrator Nomura Research Institute lost 6% to become the biggest percentage loser on the Nikkei. Of the more than 1, 500 stocks trading on the Tokyo Stock Exchange’s prime market, 35% rose, 62% fell and 2% traded flat.

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