FX.co ★ Japanese Shares Gain After Nvidia Earnings

The Nikkei 225 Index rose 0.3% on Thursday to climb above 66,400, while the broader Topix Index advanced 0.25% to 4,121, marking a third consecutive session of gains. The rally was supported by Nvidia’s strong sales outlook, which reinforced expectations that capital spending on AI infrastructure will remain robust. Japanese technology firms are deeply integrated into the global buildout of AI infrastructure, a key driver of the country’s equity market strength over the past year.

At the same time, data released on Wednesday showed that US PCE prices increased more than expected in July and remained well above the Federal Reserve’s 2% target, bolstering expectations for a more hawkish US interest-rate stance.

Technology and AI-related names led the advance, with notable gains in Kioxia Holdings (5%), Fujikura (2.6%), Ibiden Co. (2.3%), Murata Manufacturing (2.6%) and Tokyo Electron (1%).