Nikkei Rebounds on Earnings Boost; Topix Falls on Drop in Banks
Japan's Nikkei index strengthened during Thursday's trading (July 30) as earnings reports from major companies spurred buying. The Nikkei rose 0.7% to 61,867.43, while the Topix fell 0.5% to 3,952.50.
The Nikkei's gains were led by Advantest shares, which surged 17% after raising its profit forecast above market expectations. NEC and Hitachi also strengthened on the back of positive performance reports.
Kioxia shares rose 2.9% after experiencing high volatility; the stock initially surged 17% before reversing course and dropping 6%. Meanwhile, AI-related stocks such as Taiyo Yuden and Fujikura continued to weaken.
Solid corporate performance triggered renewed buying of AI-related stocks following a sharp sell-off earlier in the week. However, concerns regarding high valuations and the sustainability of AI investments continued to limit investor risk appetite.
The Topix was weighed down by weakness in banking stocks after the Federal Reserve held interest rates steady. Expectations that the Bank of Japan would also maintain its current policy stance kept investors from aggressively buying financial sector stocks.
Tamron shares were among the top gainers, rising 26% after the company received a non-binding acquisition proposal from Sony Group. Consequently, the Nikkei retains the potential to rise if earnings reports remain positive, though pressure on AI and banking stocks could keep the Japanese market volatile. (asd)
Source: Newsmaker.id
