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Japan's Nikkei rises as chip-related shares track Nasdaq higher
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Japan's Nikkei rises as chip-related shares track Nasdaq higher
Nov 19, 2024 9:31 PM

TOKYO, Nov 19 (Reuters) - Japan's Nikkei share average

rose on Tuesday, driven by chip-related stocks after the Nasdaq

closed higher overnight, while investors awaited AI leader

Nvidia's ( NVDA ) quarterly earnings due later in the global day.

The Nikkei had climbed 0.55% to 38,429.37 by the

midday break, while the broader Topix was up 0.47% at

2,704.47.

"Some of Japan's chip-related stocks rose after the U.S.

semiconductor chip index snapped six straight sessions of

losses overnight," said Shuutarou Yasuda, a market analyst at

Tokai Tokyo Intelligence Laboratory.

"Some chip shares also fell as market participants stayed

away from active bets ahead of Nvidia's ( NVDA ) earnings."

The Nasdaq and S&P 500 closed higher on Monday, recovering

some losses as investors anticipate quarterly earnings from

Nvidia ( NVDA ).

Nvidia ( NVDA ) will report its third-quarter earnings on Wednesday,

which investors will parse to assess demand for chips and the

sustainability of the AI euphoria that has driven much of the

market's rally this year.

In Japan, chip-testing equipment maker Advantest ( ADTTF )

jumped 4.18% and was the biggest boost to the Nikkei.

Semiconductor silicon wafer maker Shin-Etsu Chemical ( SHECF )

rose 1.51%.

Lasertec fell 1.07%, while Tokyo Electron

erased early losses.

Banking shares rose on expectation the Bank of Japan would

hike rates as soon as next month. The banking index

gained 0.99%, with Sumitomo Mitsui Financial Group ( SMFG ) and

Mizuho Financial Group ( MFG ) climbing 2.02% and 1.71%,

respectively.

Auto makers rose 1.35% to become the top

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes. Toyota Motor ( TM ) and Honda Motor ( HMC )

gained 1.61% and 1.76%, respectively.

Overall, investors remained cautions as they wanted to see

the impact of policy changes from the incoming Donald Trump

administration on Japanese exporters, Yasuda said.

Staffing agency Recruit Holdings ( RCRRF ) fell 3.32% to

weigh on the Nikkei the most.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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