Business · Markets · 3 hrs ago
Japan's Nikkei rises as Advantest lifts AI earnings outlook
Japan's Nikkei average opened higher on October 29, at one point gaining more than 500 yen to move above 64,500.
The rise followed gains in major US stock indexes the previous day.
Advantest raised its full-year earnings forecast on October 28, projecting record net profit and beating market expectations.
That helped prompt buying in other AI-related companies, including SoftBank Group and Ibiden.
Investors are betting on stronger AI demand, but some remain concerned that heavy spending could strain companies' finances.
Alphabet's free cash flow was negative for a second quarter in a row, and its shares fell sharply in after-hours trading.
Those concerns held back further gains as Tokyo trading continued; the broader TOPIX index was little changed.
Japan’s Nikkei 225 rose at the start of trading on October 29, reaching the low 64,500s, more than 500 points above the previous close.
Buying in artificial-intelligence-related stocks followed Advantest’s upgraded full-year earnings forecast.
Advantest’s revised forecast for its fiscal year ending March 2027 projected record consolidated net profit and exceeded market expectations.
Gains in SoftBank Group and Ibiden also supported the market.
Concerns about heavy AI investment and the returns on that spending weighed on further gains.
- Who
- Japan’s Nikkei 225 and AI-related stocks, including Advantest, SoftBank Group and Ibiden.
- What
- The Nikkei rose as investors bought AI-related stocks after Advantest raised its earnings forecast.
- When
- October 29, 2026, at the start of Tokyo trading.
- Where
- The Tokyo stock market, Japan.
- Why
- Advantest’s stronger outlook and gains in US stocks supported buying, while concerns about AI investment and debt remained.
This story does not have two clearly opposing sides.
Advantest raised its full-year earnings forecast for the fiscal year ending March 2027.
US stocks rose, and the Federal Open Market Committee kept interest rates unchanged, as markets had expected.
Japan’s Nikkei 225 opened higher, with buying in AI-related stocks supporting the market.
- Nikkei 225
- Reached the low 64,500s, more than 500 points above the previous close
- Advantest forecast
- Raised its full-year forecast for the fiscal year ending March 2027
- Advantest net profit
- Forecast to reach a record; revised outlook exceeded market expectations
- US Dow
- Closed up 0.18% on October 28
- Philadelphia semiconductor index
- Closed up 1.75% on October 28