Nikkei Poised for Fourth Consecutive Gain with Boost from Nvidia Elevating Chip Stocks

Nikkei Poised for Fourth Consecutive Gain with Boost from Nvidia Elevating Chip Stocks

24 Aug, 2023

 

Nikkei Poised for Fourth Consecutive Gain with Boost from Nvidia Elevating Chip Stocks

 

On Thursday, Japan's Nikkei stock average appeared set for its fourth consecutive day of growth, marking its lengthiest winning streak since mid-June. The surge was propelled by Nvidia, a U.S. chip designer, reporting record-breaking financial results, which in turn boosted Japanese technology shares.

During late morning trade in Tokyo, the Nikkei climbed by 0.35% to reach 32,125.18 points, resulting in a weekly gain of 2.15%. Tokyo Electron, a major chip-making equipment manufacturer, along with Advantest, a chip-testing machine producer, played a pivotal role in driving the Nikkei up, collectively contributing 87 index points. SoftBank Group, an investor with a focus on AI startups, added another 16 points to the index.

However, a closer look at individual stock performance revealed a less optimistic picture. Among the Nikkei's 225 constituents, 123 stocks saw an increase in value, while 99 experienced declines, and three remained unchanged.

The broader Topix index also saw a modest rise of 0.17%.

As sentiment was influenced by a series of subdued PMI (Purchasing Managers' Index) data readings from both Europe and the United States, enthusiasm was slightly tempered leading up to the commencement of the Federal Reserve's annual symposium in Jackson Hole, Wyoming on Thursday. This event was expected to provide insights into the future trajectory of monetary policy.

Maki Sawada, a strategist at Nomura Securities, cautioned against making aggressive moves ahead of significant events like the Jackson Hole symposium. She noted a sense of caution in the air and suggested the potential for some selling activity as investors aimed to secure profits following earlier gains in the week.

Tokyo Electron observed a 2.6% uptick, while Advantest experienced a 2.2% rise. SoftBank Group also managed to achieve a 1.2% increase.

The standout performer on the Nikkei was Pacific Metals, enjoying a substantial 3.5% surge after unveiling plans to develop microwave-based nickel refining technology, which promises to reduce greenhouse gas emissions.

 

 


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