TOKYO, Japan – The Tokyo Stock Exchange saw a rocketing rise this morning, driven by the announcement of record-breaking third-quarter results from US company Nvidia, which instilled a sense of relief among investors and eased growing concerns about the possibility of an “AI bubble”.
Japanese stock indices reach historic highs
The Nikkei 225 index jumped by an astonishing 4.2%, achieving gains of over 2,000 points.
The broader Topix index rose by about 2.6%.
Shares of major Japanese technology companies topped the list of gainers:
Advantest: +10%
SoftBank Group: +8%
Tokyo Electron: Over +6%
The yen boosts gains… and the government is watching.
This record high was also supported by the weakness of the Japanese yen against the US dollar. The yen fell to a low of 157 against the dollar after minutes from the US Federal Reserve meeting indicated that US interest rates are likely to remain unchanged until the end of the year.
Commenting on the situation, Japanese Finance Minister Satsuki Katayama stated that she was monitoring foreign exchange markets “with a great sense of urgency,” indicating government concern about the sharp decline in the value of the local currency.
Nvidia is igniting the global technology sector.
Nvidia’s results were the main catalyst for investors’ strong return to high-tech stocks. The company, a leader in artificial intelligence chips, posted record revenues of $57 billion in the third quarter, a 60% year-over-year increase.
Nvidia CEO Jensen Huang stated that Blackwell chips achieved “exceptional” sales, noting that “demand for them continues to boom.”
The positive impact wasn’t limited to Tokyo; it extended to boost the South Korean stock market, where:
The KOSPI index rose by more than 2%.
Shares of SK Hynix and Samsung Electronics rose by about 4%.
