Japan Indexes Halted Two-Day Slide, Seven & I Dropped 11% After Management Buyout Collapsed

Akira Ito
27 Feb, 2025
Tokyo

Japan's indexes halted a two-day slide ahead of the release of key economic updates on Friday. 

The Nikkei 225 stock average increased 0.3%, and the broader TOPIX advanced 0.7% after benchmark indexes in New York stabilized. 

Stocks advanced, and the semiconductor equipment makers led the gainers in Tokyo after Nvidia reported a sharp jump in earnings and offered a better-than-expected outlook in the current quarter. 

Investors have been on the defensive after China's startup DeepSeek released a cheaper alternative for artificial intelligence, raising the prospects of fewer new customers for Nvidia's expensive chips. 

However, those worries were set aside after Nvidia reported fourth quarter results. 

Revenue in the quarter ending in January increased 78% to $39.3 billion, and net income soared 71% to $22.1 billion.

For 2024, earnings jumped 145% to $72.9 billion, and net income soared ninefold from 2023.

Investors are looking ahead to the release of key economic updates on Friday, including industrial production, retail sales, and Tokyo-area inflation. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 38,259.96, and the broader TOPIX advanced 0.7% to 2,734.66. 

Tokyo Electron increased 1.2% to ¥23,220.0, Advantest Corp. fell 1.8% to ¥8,906.0, and Disco Corp. jumped 2% to ¥41,930.0.

Seven & I Holding dropped 10.6% to ¥2,125.0, and the management buyout of the company fell apart on financing issues. 

The parent company of Seven Eleven failed to arrange financing for its 8 trillion yen, or $53.7 billion, buyout.

Itochu was reportedly considering participating with one trillion yen, and at least three other large banks were involved in arranging the financing for a complex deal.

The Yomiuri newspaper first reported that the company has abandoned its buyout plan amid difficulties in arranging financing. 

Itochu jumped 4.4% after the trading house said it no longer plans to participate in the Seven & I buyout.