Global Market: Japanese stocks rise as chip rally lifts Topix to record high

Japanese shares rose on Thursday, with the broader Topix hitting a record high, as chip-related stocks tracked gains in U.S. peers and a strong earnings outlook for domestic companies boosted investor sentiment, according to a Reuters report.

The Nikkei rose 1.6% to 68,605.51 by 0221 GMT, while the Topix gained 0.51% to 4,160.28, extending its winning streak to seven sessions.

According to the report, the rally followed gains on Wall Street, where the S&P 500 and Nasdaq advanced on Wednesday after upbeat quarterly results from CoreWeave and other artificial intelligence infrastructure companies. Mild U.S. inflation data also strengthened expectations that the Federal Reserve will keep interest rates unchanged in September. The PHLX Semiconductor Index climbed about 2.5%.


Japanese semiconductor-related stocks benefited from the strength in U.S. chip shares. Advantest, which makes chip-testing equipment, rose 5.35%, while memory chipmaker Kioxia jumped 10.01%. Ibiden, a supplier to Nvidia, gained 9.77%.

Reuters cited market strategist Kazuaki Shimada of IwaiCosmo Securities as saying the latest rally differed from previous advances because investors were buying both value and growth stocks, supported by a stronger corporate earnings outlook.

Toppan Holdings surged 14% after the printing and packaging company reported that its first-quarter net profit more than doubled from a year earlier.

Financial stocks also advanced, with Mitsubishi UFJ Financial Group rising 0.8% and Mizuho Financial Group gaining 0.66%.

The strength in corporate earnings has provided additional support to Japanese equities. Reuters reported that around 18% of Topix companies whose fiscal year ends in March raised their annual recurring profit forecasts in the first quarter, compared with only 2% that lowered their forecasts, according to Shimada.

Market breadth remained relatively balanced, with 51% of more than 1,500 stocks on the Tokyo Stock Exchange's Prime Market trading higher, while 45% declined and 3% were unchanged.