Global Market: Japan stocks rise ahead of Nvidia earnings, US inflation data

Japanese shares edged higher on Wednesday, with investors awaiting Nvidia’s earnings report and key U.S. inflation data that could provide fresh clues on the timing of the Federal Reserve’s next interest-rate move, Reuters reported.

The benchmark Nikkei 225 rose 0.56% to 66,227.55 by the midday break, recovering from an earlier decline. The broader Topix gained 0.61% to 4,118.44.

Wall Street’s main indexes ended higher overnight ahead of Nvidia’s results, due after the U.S. market close on Wednesday. The earnings are being closely watched for signs of continued strength in the artificial intelligence sector, which has been a major driver of gains in global equities.


According to Reuters, investors are likely to remain cautious ahead of the highly anticipated Nvidia results, potentially limiting further gains in Japanese equities.

SoftBank Group, a major investor in the AI sector, climbed 2.71%, helping support the Nikkei.

Investors were also focused on the U.S. Personal Consumption Expenditures price index for July, the Federal Reserve’s preferred inflation gauge, which was due later on Wednesday. The data follows an unexpected decline in U.S. nonfarm payrolls and broadly in-line consumer inflation, developments that have tempered expectations of a Federal Reserve rate hike in September.

Reuters reported that a softer-than-expected PCE reading could further reduce expectations of a near-term Fed rate increase and provide additional support to equities.

Market breadth on the Nikkei was positive, with 150 stocks advancing compared with 70 decliners, while five stocks were unchanged.

Mitsubishi Materials was the best-performing Nikkei stock, rising 7%, followed by Dowa Holdings, which gained 4.85%, and Tokyo Electric Power, up 4.71%.

On the losing side, Taiyo Yuden fell 3.88%, while Sumco declined 3.73% and Nichirei dropped 2.55%.

With Nvidia’s results and U.S. inflation data both in focus, investors are likely to look for signals on the strength of the AI-driven rally and the outlook for U.S. monetary policy, factors that could influence Japanese and broader global markets in the coming sessions.

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