The Nikkei Average briefly rose ¥500, with buying of AI-related stocks leading the gains. Advantest's upward revision to its earnings forecast provided the backdrop, while expectations for related stocks supported the market.
The Nikkei Average started higher in the Tokyo market at the opening of the morning session on the 29th, reaching the low ¥64,500s at one point. As investor sentiment improved on the back of gains in U.S. equities, the performance of AI-related stocks influenced the market.
It was reported that Advantest, an AI-related stock, had raised its full-year earnings forecast above market expectations. Buying of related stocks led the gains on favorable sentiment toward the company's outlook. Other AI-related stocks, including SoftBank Group and Ibiden, also reacted in the same way and supported the market.
Meanwhile, Alphabet's free cash flow turned negative in its results, and its share price fell in after-hours trading in the U.S. stock market. Investors remain wary of the financial risks of AI-related stocks.
The Tokyo Stock Price Index was little changed. Kioxia Holdings, Fujikura and Tokyo Electron rose, while Fast Retailing, TDK and FANUC fell.