Japanese stocks ended Thursday’s trading session with measured gains. The market reversed earlier losses to finish mostly higher. Consequently, this positive movement reflects two distinct catalysts. Firstly, heavyweight chip-toolmaker Advantest raised its profit forecast significantly. Secondly, a new political poll boosted major defense sector equities.
The broad Topix index advanced by zero point three percent overall. It closed the session at three thousand five hundred forty-five point thirty. Earlier, however, it had fallen by as much as zero point eight percent. Meanwhile, the tech-focused Nikkei index finished essentially flat. It managed to recoup declines of zero point seven percent from the morning.
A key Nikkei newspaper poll influenced market sentiment substantially. The survey suggests Prime Minister Sanae Takaichi’s party may win a majority. The upcoming national election occurs on February eighth. A simple majority would grant the premier greater policy flexibility. Her agenda includes bolstering national security and expanding economic stimulus.
Defense stocks reacted very positively to this political news. Mitsubishi Heavy Industries added two point one percent. Kawasaki Heavy Industries jumped by two point five percent. Furthermore, IHI Corporation climbed two point eight percent. These gains directly followed the promising election poll results.
Advantest provided the other major boost for Japanese stocks. The company raised its annual profit forecast by twenty-one percent. Consequently, its share price jumped five point two percent. Advantest is a crucial supplier to chip giant Nvidia. This positive guidance countered broader tech sector weakness.
Most other Japanese technology shares faced selling pressure. Microsoft recently announced record spending on artificial intelligence. This news stoked investor worries about delayed industry payoffs. Tokyo Electron dropped five point six percent as a result. Similarly, Fujikura lost three percent during the session.
Nomura Securities strategist Wataru Akiyama commented on the mixed sector performance. He stated strong outlooks could lift the Nikkei again later. However, the market has not reached that specific point yet. The performance of Japanese stocks remains dependent on sector-specific news.
Automaker shares also rose, recovering from a recent sharp slide. The sector gained two point three percent on Thursday. This followed a three-session plunge of six point seven percent. A rising yen had eroded the value of their substantial offshore revenues.
Toyota Motor contributed to the sector’s positive performance. It announced it retained its global top-selling automaker crown. Toyota achieved this milestone for a sixth consecutive year. Its shares rose three percent on this confirmation. This resilience highlights the diverse drivers within Japanese stocks.
The broader implications involve policy continuity and sector rotation. A potential LDP election victory suggests stable defense spending. This prospect is clearly bullish for major industrial contractors. Meanwhile, tech investors are scrutinizing AI investment timelines carefully. The market is distinguishing between near-term and long-term winners.
Future market direction will hinge on the actual election outcome. Additionally, more corporate earnings guidance will provide clarity. The yen’s trajectory against major currencies remains a key watchpoint. Analysts will monitor for sustained momentum in the defense sector. The overall tone for Japanese stocks remains cautiously optimistic currently.
