TOKYO: Japan's Nikkei share average closed higher on Friday and logged its biggest weekly gain in five months, as upbeat earnings and renewed AI optimism helped the market recover from the previous week's sharp selloff despite concerns surrounding Nvidia.
The Nikkei rose 0.53% to close at 61,142.35, posting a weekly gain of 6.46% for its best week since the week ended June 15.
The broader Topix advanced 0.11% to 3,941.57, marking a weekly gain of 6.3%, its strongest since mid-August 2024.
The market rose despite an overnight selloff in Nvidia shares that weighed on US stocks. Gains in Broadcom and Alphabet, however, pointed to continued investor confidence in the wider AI sector.
Semiconductor stocks rose early, though some trimmed gains by the close as South Korean equities weakened. Advantest gained 2.08% and Tokyo Electron rose 1.69%, while SoftBank Group lost 5.11%.
"The rise in semiconductor- and AI-related shares, which had been under pressure for a relatively long period, appears to have been a factor behind this week's gains in the Nikkei average and Topix," said Maki Sawada, equities strategist at Nomura Securities.
Nvidia CEO Jensen Huang's departure has also raised questions about the company's future direction and the implications for US chip export policy and access to the Chinese market.
Japanese shares weakened on Thursday amid Nvidia concerns, helping set the stage for Friday's recovery, Sawada said.
Market breadth was positive on Friday, with 132 constituents of the Nikkei 225 rising against 91 decliners and two unchanged stocks.
The largest percentage gainers in the Nikkei were Sapporo Holdings, up 8.56%, followed by Trend Micro, 8.32% higher, and Amada, which gained 7.59%.
The largest losers were Mercari, down 8.88%, followed by The Japan Steel Works, 8.46% lower, and Kawasaki Heavy Industries, which lost 8.29%. - Reuters
