Nikkei 225 Slips 0.3 Percent Near 66,060 After Early Nvidia Rally Fades Across Tokyo Shares

TOKYO — Japan’s Nikkei 225 slipped in Thursday afternoon trade, trading around 66,060 after giving back an early advance that followed stronger-than-expected earnings from U.S. chipmaker Nvidia.

The index was last down about 0.3 percent, or roughly 202 points, from Wednesday’s close of 66,262.16. Intraday prices swung from an opening gain above 66,700 to a session low near 65,780 before stabilizing in the mid-66,000 range. Broader Tokyo stocks were more mixed, with the Topix holding modest gains at times as investors rotated toward value names even as the Nikkei faded.

The session opened higher after Nvidia reported quarterly results that beat Wall Street estimates and pointed to continued demand for artificial intelligence chips. U.S. futures also firmed on the news. Japanese semiconductor-related shares, including memory and equipment names, rose at the open. That strength did not last. Chip-testing equipment maker Advantest later reversed and weighed on the benchmark, helping pull the Nikkei back below its early high.

SoftBank Group, a major investor in OpenAI and other technology businesses, traded narrowly. Some reports showed a small gain, while others had the stock slightly lower as the session progressed. The divergence between the Nikkei and the Topix reflected a familiar pattern this month: heavyweight growth and chip stocks driving the 225-share average, while a wider set of domestic and value shares supported the broader market.

Asian markets were mixed overall. South Korea’s Kospi rose about 1.5 percent, with Samsung Electronics among the gainers, even after the Bank of Korea raised its policy rate by 25 basis points to 3 percent. Taiwanese shares also advanced. Hong Kong’s Hang Seng slipped, while Shanghai’s composite index rose. Oil prices declined, extending a recent pullback.

U.S. data released overnight remained part of the backdrop. A revised estimate showed the American economy grew at a 1.5 percent annualized pace in the April-June quarter. The inflation measure preferred by the Federal Reserve held at 3.7 percent last month, matching June’s reading and keeping investors attentive to the path of U.S. interest rates.

The Nikkei remains well below its 52-week high of 72,831.73, set in June, but far above last year’s trough near 41,835. The index has spent much of August oscillating between roughly 65,000 and 69,000 as traders weighed AI-related valuations, the yen, Japanese government bond yields and Bank of Japan policy.

Trading in recent sessions has often been cautious. On Wednesday, the Nikkei closed up 0.62 percent at 66,262.16 after reclaiming the 66,000 level, but Prime Market turnover was relatively light as investors waited for Nvidia’s results. Thursday’s early jump and later fade fit that wait-and-see pattern: a quick reaction to the U.S. chip report, followed by profit-taking and stock-specific pressure.

Japanese exporters and technology suppliers have been among the biggest beneficiaries of the global AI investment cycle. Names tied to chipmaking equipment, memory, electronic components and data-center infrastructure have swung sharply whenever U.S. technology earnings or Treasury yields shifted the outlook for growth stocks. Advantest’s afternoon weakness illustrated how a single heavyweight can reverse an index move even when the broader AI narrative remains intact.

Currency markets also influenced positioning. The dollar has traded near 159 yen in recent sessions, a level that can support exporters’ overseas earnings when translated back into yen but can also complicate Bank of Japan policy calculations. Investors continue to watch for any sign that Japanese officials will tighten further or that U.S. rates will stay higher for longer.

Energy prices added another layer. Brent crude was on track for a fourth straight day of declines at one point Thursday, a move that can ease cost concerns for importers while reducing some of the inflation pressure that has kept central banks cautious. Gold and cryptocurrencies firmed as markets looked ahead to speeches at the Federal Reserve’s Jackson Hole gathering.

For Tokyo traders, the immediate question is whether the Nikkei can hold the 66,000 area after two days of reclaiming and then testing that level. A sustained close above it would reinforce the rebound from mid-August lows. A break back toward 65,000 would revive concerns that AI-related valuations remain vulnerable to any disappointment in chip demand or a further rise in global yields.

Market participants have treated Nvidia’s results as a key test of whether spending on AI processors and data-center infrastructure can justify elevated prices across the supply chain. The company’s beat and upbeat outlook initially supported that thesis. The subsequent pullback in parts of the Japanese chip complex showed that investors are still selective rather than broadly aggressive.

Retail and institutional flows have been uneven. Some buyers returned to financials and selected semiconductor names on Wednesday. Thursday’s action suggested that many still prefer to fade sharp openings rather than chase them, especially after a multi-week stretch of large swings.

The coming sessions will hinge on follow-through in U.S. technology shares, the yen’s path and any additional guidance from Japanese policymakers. Until those signals clarify, the Nikkei is likely to remain sensitive to moves in a handful of high-weighted technology and trading-house stocks.

As of mid-afternoon in Tokyo, the index’s modest decline left it little changed on a two-day basis, underscoring a market that is digesting good news from the world’s largest AI chip supplier without committing to a new leg higher.