Japan's Nikkei wavers as lower bond yields offset Broadcom hit

Japan's Nikkei share average remained uncertain on Thursday as investors grappled with lower bond yields, falling oil prices, and a decline in Broadcom shares. The Nikkei 225 Index ended the day up 0.21% at 64,461.68, after fluctuating between gains and losses. The broader Topix climbed 0.91% to 4,118.68. Major US stock indexes had risen overnight, but Broadcom shares plummeted more than 3% in extended trading after the company reported quarterly revenue that fell short of Wall Street expectations.

Senior analyst Ryotaro Sawada from Tokai Tokyo Intelligence Laboratory noted that lower Broadcom shares "could cap gains in semiconductor-related stocks that typically drive the Nikkei." Japanese chip and AI-related firms were mixed, with Advantest slipping 0.8% and Fujikura losing 1.79%, while Kioxia rose 0.67% and Tokyo Electron gained 0.81%.

US Treasury yields softened from multi-year peaks overnight, while 30-year Japanese government bond yields fell as much as 10 basis points. Oil prices saw a slight dip with no indication of fresh disputes between the United States and Iran. The energy exploration sector on the Tokyo bourse suffered the worst performance among its 33 sector sub-indexes, with Uniqlo parent Fast Retailing down 3.58% and oil and gas explorer Inpex falling 3.43%.

Furnishing retailer Nitori Holdings surged 6.62% and automaker Mitsubishi Motors rose 4.09%, marking them as the Nikkei's biggest percentage gainers. Japan's finance ministry plans to auction approximately 600 billion yen ($3.78 billion) in 30-year bonds later in the day. Sawada suggested that a weak auction could negatively impact technology shares through higher interest rates, but might bolster bank shares.