TOKYO, – Japan’s Nikkei share average ended higher on Thursday, supported by AI chipmaker Nvidia’s strong quarterly outlook and renewed trader confidence after billionaire investor Warren Buffett increased his investments in the country.
The Nikkei recovered from early losses to close 0.7% higher at 42,828.79. The broader Topix also ended up 0.7%.
Nvidia shares are a key driver of Japan’s Nikkei, which is heavily weighted toward chip-related stocks.
U.S.-based chipmaker Nvidia forecast third-quarter revenue above market estimates on Wednesday, helped by robust demand for its AI chips, but the stock fell 3% in after-hours trading as its on-hold China business remained uncertain.
“The main focus is Nvidia. The market is waiting to see how the shares will perform on Wall Street later in the day,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
The Nikkei index opened lower on Thursday but recouped losses as chip-testing equipment maker and Nvidia supplier Advantest rebounded, closing up 1.5% after an earlier drop of 3.6%.
The benchmark index turned higher in the afternoon after trading house Mitsubishi Corp said Buffett’s National Indemnity Company raised its stake to 10.23% from 9.74%. The U.S. investor had previously raised its holdings in five major Japanese trading houses, including Mitsubishi, in March.
Mitsubishi’s stock gained nearly 2% while rival Mitsui & Co. rose 1.2%.
Technology investor SoftBank Group rose 3.2%, contributing the biggest boost to the Nikkei. Shares of chip-making equipment maker Tokyo Electron ended 2% higher.
Cable maker Fujikura, a gauge for investments in data centre sector, jumped 5.5%.
Sompo Holdings jumped 3.3% after the Japanese insurer said it would acquire New York-listed Aspen Insurance Holdings for about $3.5 billion.
Energy explorers rose 4% to become the top performers among the Tokyo Stock Exchange’s 33 industry sub-indexes.
This article was generated from an automated news agency feed without modifications to text.
