Tokyo stocks rise on strong chip shares following solid earnings reports.

Tokyo stocks closed slightly higher on Thursday, driven by investor interest in semiconductor-related shares following positive earnings reports from Japan’s tech sector. The Nikkei Stock Average gained 99.19 points, or 0.25 percent, ending at 39,513.97, while the broader Topix index rose by 6.34 points, or 0.23 percent, finishing at 2,781.93.

Among the top performers on the Prime Market were rubber products, air transportation, and nonferrous metal issues. The U.S. dollar briefly dipped against the yen in Tokyo as Japanese exporters engaged in settlement activities. The Federal Reserve’s decision to maintain interest rates had minimal impact on the market, according to dealers.

By 5 p.m., the dollar was trading at 154.53-55 yen, compared to 155.19-29 yen in New York and 155.29-31 yen in Tokyo on Wednesday. The euro, on the other hand, was quoted at $1.0427-0428 and 161.13-17 yen, slightly lower than the previous day’s rates.

The yield on the 10-year Japanese government bond increased by 0.020 percentage point to 1.210 percent, driven by speculation that the Bank of Japan might raise interest rates following a recent decision.

Initial market sentiment was dampened by Wall Street losses, particularly in U.S. tech giant Nvidia Corp. However, buying activity in Advantest, a key player in the chip-testing equipment sector, provided support as the company reported positive earnings for the April-December period.

Kazuo Kamitani, a strategist at Nomura Securities Co., noted that the lack of significant trading catalysts and fluctuations in the yen’s value may have impacted export-related stocks in the market. Despite these challenges, the overall sentiment remained cautiously optimistic.

In summary, Tokyo stocks experienced a modest uplift on Thursday, with a focus on semiconductor-related shares buoyed by strong earnings reports within Japan’s tech industry. The market exhibited resilience in the face of global economic shifts and uncertainties, showcasing the continued confidence of investors in the region’s financial landscape.