Japan's Nikkei rebounds as AI shares gain, oil tempers broader mood

Tokyo Electron

09/07/2026 07:56

Updates with closing prices
By Satoshi Sugiyama

    TOKYO, July 9 (Reuters) - Japan's Nikkei share average rebounded on Thursday after a three-day losing streak, as AI-related shares tracked gains in the U.S. technology sector, although higher oil prices following renewed U.S.-Iran hostilities kept investor optimism in check.
The Nikkei 225 index .N225 climbed 1.4% to close at 67,743.85, trimming some gains after rising as much as 2.4% earlier. The broader TOPIX .TOPX rose 0.4% to 4,020.37.
Semiconductor-related shares anchored the Nikkei's rise, with flash memory chipmaker Kioxia 285A.T surging 8.3% and chip testing equipment maker Advantest 6857.T jumping 5.9%, while chip equipment manufacturer Tokyo Electron 8035.T advanced 5.5%.
Overnight, the Nasdaq rose following a more than $30 billion chip-supply agreement between Broadcom AVGO.O and Apple AAPL.O, and a report that China plans to allow its top AI firms to buy a limited number of Nvidia's NVDA.O H200 chips.
The news on China "appears to have fuelled expectations for business expansion across Nvidia's supply chain, including in Japan," said Wataru Akiyama, an equities strategist at Nomura Securities.
Meanwhile, concerns about the Middle East returned to the fore after U.S. President Donald Trump declared that an interim agreement to end the war with Iran was "over."
The U.S. military said on Wednesday it was launching fresh strikes on Iran aimed at keeping the Strait of Hormuz open to traffic and in response to Tuesday's assault on three cargo ships transiting the strait.
Oil prices rose about 1% on Thursday. Japan's air transport .IAIRL.T sector shed 2.2% and transport equipment stocks .ITEQP.T lost 1.9%.
Higher oil prices rekindled inflation concerns in the Japanese government bond market. Combined with worries over fiscal health, that pushed the benchmark 10-year JGB yield to a fresh 30-year high. Real estate .IRLTY.T, which is sensitive to interest rate moves, fell 1.3%.
Market breadth was negative with 146 losers on the Nikkei against 77 winners, as the index's gains were skewed by heavily weighted stocks such as Advantest and Tokyo Electron. 
The biggest percentage losers in the index included Mitsubishi Materials Corp 5711.T, down 6.9%, and Yokohama Rubber Co Ltd 5101.T, down 3.5%.

 (Reporting by Satoshi Sugiyama; Editing by Subhranshu Sahu and Sonia Cheema)
 ((Satoshi.Sugiyama@thomsonreuters.com;))