Japan's Nikkei reverses early gains as Nvidia supplier Advantest falls

Tokyo saw a reversal of early gains in Japan's Nikkei share average on Thursday, as Nvidia supplier Advantest saw its gains erased and traded lower. Meanwhile, the broader Topix index inched higher on value-buying. The Nikkei closed 0.14% down at 66,170.13, while the Topix rose 0.19% to 4,118.69. The Nikkei had opened higher after Nvidia shares jumped nearly 5% in extended trading following a forecast that revenue would increase by 70% in the next fiscal year.

However, the index changed course as Advantest, a chip-testing equipment maker, fell by 1.96%. SoftBank Group, a technology investor, fell by 0.56%. Analyst Kazuaki Shimada of IwaiCosmo Securities noted that markets remained cautious about buying chip-related stocks after a sharp rise in the first half of the year. Nonetheless, market sentiment appeared firm due to the Topix's rise, indicating investors were shifting their money towards value stocks.

Financial institutions, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, saw gains of 0.5% and 0.7% respectively. Fibre optic cable manufacturer Fujikura rose by 2.83%, and memory chip maker Kioxia increased by 5.16%. Out of over 1,500 stocks trading on Tokyo Stock Exchange's prime market, 47% rose, 48% fell, and 4% traded flat.