Japan's Nikkei rises on Advantest profit outlook but Samsung weighs
TOKYO: Japan’s Nikkei share average advanced on Thursday on heavyweight chip equipment maker Advantest’s improved profit forecast, although South Korea’s Samsung Electronics dampened the mood after its shares tumbled despite record earnings. The Nikkei ended the morning session with a 0.3% gain to 64,131.28, although it had earlier been up as much as 1.3% before Samsung’s announcement. Advantest…
Japan's Nikkei share average experienced a surge on Thursday, driven by Advantest's upgraded profit forecast, while South Korea's Samsung Electronics' shares declined, causing a dip in the broader market. The Nikkei ended the morning session up 0.3% at 64,131.28, after reaching a peak of 1.3% earlier, but ultimately settled slightly lower due to Samsung's announcement.
Advantest contributed 408 points to the Nikkei's net gain of 177 points. The Topix, a broader market index, fell 0.3% to 3,979.89, having been down for most of the morning. Japan, South Korea, and the US are currently in the midst of a tech earnings season, with Japan's Tokyo Electron and SoftBank Group among the companies reporting results on Thursday and Friday, as well as the Bank of Japan announcing a policy decision on Friday.
Analysts have noted a sense of apprehension in the market ahead of these events, with some investors adopting a risk-averse stance. Advantest's shares rose 5.4%, with an initial gain of up to 9.1%, after the company increased its annual operating profit forecast by 14% on Wednesday, following the conclusion of trading. However, other chip and AI-related shares faced early setbacks, with Tokyo Electron declining 0.9% and SoftBank Group dropping 0.6%.
Hitachi experienced the steepest decline among Nikkei components, falling 8.7% despite raising its full-year profit forecast. Among the 225 components of the Nikkei, 123 fell and 99 rose, with three trading at the same level.
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