Tokyo stocks rise on dip-buying in tech, ahead of Nvidia earnings

Tokyo stocks experienced an upward trend on Wednesday due to investors buying back into technology shares as they adjusted their positions ahead of Nvidia Corp.'s earnings announcement after the New York trading day closed. The Nikkei Stock Average, comprising 225 issues, closed at 66,262.16, marking a 0.62% gain from the previous day's close. The broader Topix index also saw a 0.42% increase, reaching 4,111.02.

Among the top-tier Prime Market, securities houses, insurance companies, and service providers were the main beneficiaries of the rise. In the early hours of the trading session, the Nikkei index indicated a downward trend as investors maintained a cautious stance, viewing the market with a risk-off attitude. However, the Topix index managed a slight gain as some lagging sectors, including medical and gaming-related stocks, received support through sector rotation.

Despite the initial uncertainty, the Nikkei index turned positive as major technology shares rebounded, mirroring gains observed in South Korea's tech-heavy Kospi index. Wataru Akiyama, a strategist at Nomura Securities Co., noted that the limited trading activity could result in a wider range of fluctuations. Additionally, a decline in crude oil futures, which helped alleviate inflation concerns following reports of positive developments in the Middle East, further bolstered the overall market sentiment.