Image Credits : asia.nikkei.com
Japan’s Nikkei Stock Average ended Wednesday’s trading session nearly unchanged, closing at 32,467.76 points, down just 0.03%. The market had initially faced pressure due to a global tech sell-off, particularly influenced by the weaker-than-expected earnings report from U.S. semiconductor giant Nvidia. The report triggered concerns among investors, leading to early losses in Japanese tech shares, especially within the semiconductor sector.
Nvidia’s performance is closely watched in Japan due to its significant influence on the tech industry. Companies like Tokyo Electron and Advantest, which supply equipment and materials to the semiconductor sector, were among those that felt the impact of the initial sell-off. The Nikkei spent most of the session in negative territory as investors reacted to the potential implications of Nvidia’s earnings on global demand for semiconductors.
However, a late session rebound in other tech stocks, including heavyweights like Sony and SoftBank, helped the Nikkei recover from its earlier dip. Sony saw gains on the back of strong sales forecasts for its gaming and entertainment divisions, while SoftBank’s Vision Fund benefitted from positive developments in some of its key investments. This recovery in tech shares helped the index to avoid a more significant decline.
Market analysts suggest that the flat close reflects the broader uncertainty currently gripping global markets. Investors are balancing optimism about Japan’s economic recovery with caution over external risks, such as rising interest rates and slowing global demand. The tech sector, which has been a key driver of the Nikkei’s performance in recent months, is particularly vulnerable to these global trends.
The broader Topix index, which includes a wider range of Japanese companies, closed slightly higher, up 0.05% at 2,328.41 points. This modest gain reflects the mixed sentiment in the market, with investors closely watching for further developments in the global economy and tech industry.