Global Market: Japan's Nikkei rises on Advantest forecast; Samsung slump caps gains

Japan's Nikkei share average rose on Thursday, supported by chip equipment maker Advantest's improved profit forecast, although a sharp decline in South Korea's Samsung Electronics weighed on investor sentiment despite the company's record earnings, according to a Reuters report.

The Nikkei ended the morning session up 0.3% at 64,131.28, paring gains after rising as much as 1.3% earlier in the session. Advantest was the biggest contributor to the index's advance, adding 408 points to its net gain of 177 points.

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The broader Topix index fell 0.3% to 3,979.89 after trading lower for most of the morning session.

According to Reuters, technology earnings across Japan, South Korea and the United States remained a key focus for investors. South Korea's SK Hynix had lifted sentiment on Wednesday, while overnight trading on Wall Street delivered mixed signals from major technology companies.

Alphabet shares fell in extended trading after the Google parent reported substantial cash spending that raised concerns among investors. Microsoft, meanwhile, reported stronger-than-expected cash flow.

Advantest shares climbed 5.4% after earlier surging as much as 9.1%. The company raised its full-year operating profit forecast by 14% on Wednesday after the market closed, boosting optimism around demand for semiconductor testing equipment.

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However, gains in other chip and artificial intelligence-related stocks faded as the session progressed. Tokyo Electron declined 0.9%, while SoftBank Group slipped 0.6%.

Hitachi was the Nikkei's biggest percentage loser, tumbling 8.7% despite raising its full-year profit forecast.

Investors also remained cautious ahead of a busy earnings calendar and the Bank of Japan's policy decision on Friday. Hundreds of Japanese companies are scheduled to report results on Thursday and Friday, adding to uncertainty over the near-term direction of equities.

The report stated that market participants were adopting a more cautious stance ahead of these events, with investors potentially reducing risk exposure amid uncertainty surrounding corporate earnings and monetary policy.

Market breadth remained negative, with 123 of the Nikkei's 225 constituents declining, compared with 99 advancing, while three stocks were unchanged.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)