Positive reactions to AI-related data and earnings helped the Nikkei average rise for a third consecutive session. November confidence among Japanese manufacturers improved, while developments in US markets and earnings reports from major companies also attracted attention as the Nikkei average moved unevenly.
In Tokyo on Wednesday, the Nikkei average rose 1.31% to finish at 61,248.59, while TOPIX rose 0.92% to 3,929.39. Some optimism about AI-related stocks, supported by data and earnings, returned and lifted the broader market.
Confidence among Japanese manufacturers in November reached its highest level in five years. A Reuters survey indicated that a sharp increase in semiconductor demand was supporting broad optimism.
US markets fell as stronger inflation data increased expectations of Federal Reserve rate hikes. Meanwhile, AI cloud company CoreWeave announced that it aims to achieve adjusted operating income in the first half of 2028.
Nvidia's third-quarter earnings report was identified as a focal point as AI-related stocks fell globally after last week's US midterm elections. SoftBank Group reported a net loss for the second quarter and fell more than 10% during the session. Among Nikkei average constituents, 140 stocks rose and 85 fell. International Electric recorded the largest gain among major stocks, while Sapporo Holdings posted the largest decline.