Buying prevailed at the Tokyo market open and the Nikkei Average extended its gains, with ADVANTEST substantially widening its advance on positive earnings news. Meanwhile, EDP's share price remained at a low level, and the announcement of its joint development agreement with Honda Motor emerged as a source of concern for the market.
Buying prevailed in the Tokyo stock market on the 29th, with the Nikkei Average opening at ¥64,126, up ¥172 from the previous day. As a sense of relief spread across the market following gains in US stocks the previous day and the FOMC's decision to leave interest rates unchanged, some market participants expect the market to remain firm against the backdrop of continued strength in US stocks.
ADVANTEST was the top news story of the day, extending its sharp advance. In earnings announced during the previous day's afternoon session, the company reported results that exceeded market expectations. Its interim profit increased substantially year on year, and its full-year outlook was revised upward.
EDP remained at a low level, while the signing of a joint development agreement between EDP and Honda R&D, a subsidiary of Honda Motor Co., Ltd., was announced. The companies plan to jointly develop fabrication technology for large wafers, but concerns over the development period and cost burden are currently prevailing.