Japan Nikkei share average advanced for a third consecutive session on Wednesday, supported by improving sentiment towards artificial intelligence stocks after fresh earnings reports. The benchmark Nikkei 225 rose 0.80 percent to 60,942.48 at the midday break, while the broader Topix index gained 0.79 percent to 3,924.51, and the recovery in AI related stocks provided support to market sentiment.
Why it matters
The driver was CoreWeave. The AI computing provider beat estimates, raised its forecast and said it would be profitable in the first half of 2028, and its shares jumped 8 percent after hours. Strong semiconductor demand and improving manufacturer confidence supported gains across the region, with the Reuters Tankan sentiment index for manufacturers rising to 27 in November from 22. The broader Topix gained 0.79 percent to 3,924.51, and the recovery in AI related stocks provided support to sentiment across the region.
SoftBank weighed on sentiment even as the index rose. The Japanese technology investment giant, one of the country biggest investors in AI, reported a second quarter net loss of 1.1 trillion yen, about 6.93 billion dollars, after the market closed on Tuesday, and its shares fell 3.02 percent on Wednesday. The loss came from writedowns on its United States data centre projects.
What happens next
The wider Asian market told the same mixed story. Asian stocks rose as CoreWeave results waved away AI bubble fears, while global bond yields jumped and the dollar held firm after the hot United States inflation print raised the risk of a half point rate hike next month. The region is buying the earnings and selling the rates, all in the same session.
What happens next will be decided by Nvidia earnings next week and by the Anthropic listing on November 19. Strong results from Nvidia could ease concerns about earnings prospects for AI and semiconductor companies, and the Nikkei three day rally would look like the start of a recovery. For now, Tokyo is betting that the AI demand story is stronger than the inflation story. SoftBank fell 3.02 percent on its 7 billion dollar loss, but the wider market rallied anyway, distinguishing the builders from the backers.
