Japan's Indexes Closed Up In Lackluster Trading; Retailers and Shipping Companies Extended Losses

Akira Ito
28 Aug, 2024
Tokyo

Benchmark indexes in Tokyo bounced around the flatline as tech stocks traded in a tight range ahead of Nvidia Corp.'s earnings. 

The Nikkei 225 and the Topix index gained more than 0.1% near the close of the trading session, as semiconductor equipment stocks were in focus. 

Nvidia Corp. is set to release its quarterly results after the close of regular trading in New York later today. 

The advanced semiconductor chip design company has led the surge in artificial intelligence-linked stocks over the last two years and is a key indicator of demand for artificial intelligence chips and servers. 

Nvidia is expected to earn between 64 cents and 71 cents per share in its latest quarter, significantly higher than 25 cents in the corresponding period a year earlier. 

Revenue in the quarter is expected to soar to $28.68 billion from $13.51 billion a year earlier. 

Nvidia sales have been on a tear, and the company has benefited from its leadership positioning in the market and accelerated its quarterly sales growth between 80% and 100% for eight quarters in a row. 

Nvidia's quarterly earnings per share over the last five quarters have also exceeded between 5 cents and 6 cents from the consensus earnings estimates of analysts. 

The yen weakened by 0.55 yen to 144.54 against the U.S. dollar as traders continued to debate the future rate path and likelihood of a rate hike at the end of the Bank of Japan's next policy meeting on September 20. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 0.1% to 38,333.50, and the Topix index advanced 0.3% to 2,687.92. 

Tech companies, retailers, financial services providers, and industrial companies were in focus. 

Advantest, Tokyo Electron, Lasertec, and Screen Holdings traded in a tight range and managed to bounce back and close up as much as 4% from early morning losses. 

Isetan Mitsukoshi, Seven & I, Fast Retailing, Aeon Co., and Takashimaya declined between 0.3% and 0.7%. 

Sumitomo Mitsui Financial declined 0.3%, and Mitsubishi UFJ and Mizuho Financial traded in a tight range and eased 0.3% in active trading. 

Toyota Motor and Honda Motor jumped about 2%, Nissan Motor declined 0.3%, and Subaru Corp. gained 0.4%. 

Ocean freight shipping companies extended losses for the second week in a row amid rising violence in the Middle East that could force shipping companies to seek alternative longer routes to Europe. 

Mitsui OSK Lines declined 0.5% to ¥5,069.0, Nippon Yusen KK decreased 0.2% to ¥5,077.0, and Kawasaki Kisen Kaisa dropped 0.5% to ¥2,064.0.