Japan's Nikkei share average rose on Thursday, driven by sharp gains in Advantest after the chip-testing equipment maker raised its annual profit forecast, while banks dragged the broader Topix lower. The Nikkei was up 0.81% at 61,934.03 as of 0050 GMT, while the Topix fell 0.81% to 3,941.8. Advantest jumped 10% after raising its annual operating profit forecast by 35% on Wednesday as AI spending drives demand for its chip-testing equipment. "Thanks to Advantest's tremendous outlook, shares in other chip-related stocks rose," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities. Chip-making equipment maker Tokyo Electron rose 4.3%. Memory maker Kioxia jumped 11%. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group lost 2.58% and 1.8%, respectively. "This is a typical trend in recent sessions where AI-related shares are strong, value shares such as banks are sold off," said Shimada. Of the more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 14% rose, 84% fell and 1% traded flat.
Japan's Nikkei rises on sharp Advantest gains
Japan's Nikkei share average saw gains on Thursday, boosted by Advantest. Advantest's shares surged after it raised its annual profit forecast significantly. Other chip-related stocks also experienced upward movement following this positive outlook. However, the broader Topix index declined as banking shares faced selling pressure. This divergence reflects a recent market trend favoring AI-related stocks over value shares.
TL;DRAI
Advantest raised FY profit forecast 35% on AI chip-testing demand, driving Nikkei +0.81%. Sector rotation—chip-makers strong (+4%, +11%), financials sold—signals durable AI semiconductor capex demand critical for enterprise upgrade cycles and stack decisions.
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