The Nikkei average extended gains against the backdrop of higher U.S. stocks, but briefly fell into negative territory following reports that Nvidia was considering removing directors. It recovered again in the afternoon, while the larger-than-expected rise in the domestic corporate goods price index also affected market sentiment.
The Nikkei average ended the morning session at ¥61,714.16, up ¥465.57, with estimated trading volume of 1.15644 billion shares. During the day, buying led by semiconductor-related stocks came first in response to developments in U.S. equities, supporting export stocks.
In the U.S. market, the Dow ended up $254.60 and the Nasdaq up 400.31 points, while positive sentiment toward earnings from AI cloud services company CoreWeave and a rise in the SOX Index supported the market. Meanwhile, the share price of Nvidia plunged outside trading hours following reports that its board was considering removing CEO Jensen Huang.
The Nikkei average briefly fell into negative territory after the open against the backdrop of a sharp rise in the U.S. SOX Index, but recovered and widened its gains. Domestic corporate goods prices rose 7.1% year on year in October, exceeding the market forecast of a 6.5% increase.
By stock, Tokyo Electron, SoftBank Group, Fast Retailing, Shin-Etsu Chemical and TDK rose, while Recruit Holdings, Advantest, Ibiden, BayCurrent and Bandai Namco Holdings declined. By sector, chemicals, nonferrous metals, fisheries, agriculture and forestry rose, while services, transportation equipment, and pulp and paper fell. The afternoon session was expected to unfold while investors assessed further developments related to Nvidia amid a continuing stream of earnings announcements.
In the U.S. tonight, initial jobless claims and remarks by senior Federal Reserve officials are scheduled to be released, and developments surrounding Nvidia after the close could have an effect.