Tokyo stocks up on SpaceX results but shy ahead of earnings releases

Tokyo stocks experienced a modest gain on Wednesday following SpaceX's release of strong earnings results, though the increase was less significant compared to recent declines that occurred before major technology companies announced their earnings reports. The Nikkei Stock Average, which includes 225 issues, closed 545.82 points, or 0.85 percent, higher at 64,621.24, while the Topix index increased by 34.52 points, or 0.86 percent, to 4,043.73. Among the top-tier stocks, nonferrous metal, bank, and insurance issues were the primary gainers.

SpaceX marked its first quarterly profit since going public, driven by robust sales growth, particularly in its artificial intelligence division. This positive news led to increased buying activity in AI and semiconductor-related shares, which had previously faced declines. The U.S. dollar remained relatively stable, trading around the 158 yen mark in Tokyo, as market participants awaited the Bank of Japan's policy decision for the week ahead.

However, the recovery in Tokyo stocks lacked momentum when compared to the earlier declines. Maki Sawada, a strategist at Nomura Securities Co., noted that investors were hesitant to significantly boost their purchases, citing ongoing growth concerns about AI-related business. The positive momentum appeared to fade in the afternoon as traders remained cautious, waiting to see the earnings announcements from Tesla Inc. and Meta Platforms Inc. scheduled for the following Thursday's Tokyo market opening.