Solid Gold Berjangka – The Nikkei 225 index climbed 1.1% to close at 64,659 on Thursday (October 29), marking its third consecutive session of gains. Market sentiment received a significant boost from Advantest’s earnings report, which indicated robust demand for testing equipment for artificial intelligence (AI) chips.
Shares of Advantest surged approximately 6% after the company raised its full-year profit forecast, driven by demand for AI chip-testing equipment that exceeded expectations. This performance has further bolstered optimism regarding the outlook for Japan’s semiconductor sector.
Other technology stocks also saw gains; Tokyo Electron rose 2.4%, Ibiden climbed 2%, and Kioxia added 1.2%. These advances helped sustain the Nikkei’s positive momentum, even as the global AI sector faces certain pressures.
Conversely, disappointing earnings reports from Alphabet and Samsung Electronics have reignited concerns regarding the sustainability of massive investments in the AI sector. These concerns have tempered broader market gains, as investors begin to question how quickly technology spending will translate into revenue and profit growth.
Looking ahead, investors will closely monitor the Bank of Japan’s (BOJ) policy decision. While the BOJ is expected to keep interest rates unchanged, the market will be looking for clues regarding a potential rate hike in December, given persistent inflationary pressures. The BOJ’s policy signals will be a key factor in determining whether the Nikkei’s rally continues and how the yen will perform. (srh)