Japan's Nikkei rebounds; Advantest drops as Nvidia's strong growth forecast fails to cheer

Japan's Nikkei share average edged up on Thursday, rebounding from its declines in previous sessions, but gains were limited as chip company Advantest fell despite a strong growth forecast by its client Nvidia.

The Nikkei was up 0.15% at 38,198.96 by the midday break, while the broader Topix rose 0.49% to 2,729.63.

"Nvidia reported firm results but the market was not overjoyed," said Yusuke Sakai, a senior trader at T&D Asset Management.


"If the market had been more positive to Nvidia's outcome, the U.S. stock futures could have risen. Their muted moves weighed on Japanese stocks," he said.

The market had been awaiting artificial intelligence chip-maker Nvidia's earnings for a cue to lift the Nikkei, which touched a four-month low on Wednesday.

But chip-related stocks, key components for the index, were mixed as the market wanted to watch Nvidia's performance later in the day, strategists said.

Chip-making equipment maker Tokyo Electron trimmed early gains to rise 0.81%, providing the biggest boost to the Nikkei.

Chip-testing equipment maker Advantest, a supplier to Nvidia, erased early gains to fall 1.27%, weighing on the Nikkei the most.

Chip-related firm Socionext jumped 7.47% to become the biggest gainer on the Nikkei.

Seven & I Holdings tanked 11.47% after the operator of convenience store chains said its founding Ito family could not secure the financing required for a $58 billion management buyout, and it would consider a rival offer from Canada's Alimentation Couche-Tard.

Itochu jumped 5.55% after the trading firm said it had ended its consideration of participating in the Seven & I founding family's buyout proposal.

Nissan Motor jumped 4.81% after a Bloomberg report said the automaker is considering replacing its CEO Makoto Uchida following a worsening in the Japanese automaker's business performance and the collapse of talks to combine with Honda Motor .