Japan's Nikkei edges higher on tech strength; Nvidia-linked suppliers drag

By Reuters News

By Junko Fujita

- Japan's Nikkei share average inched higher on Thursday, helped by tech stocks even as Nvidia-linked suppliers Advantest and Ibiden fell amid uncertainty surrounding the US AI chipmaker.

The Nikkei .N225 was up 0.33% at 61,448.21 as of 0125 GMT, while the broader Topix .TOPX rose 0.59% to 3,952.62.

"Nvidia's future is unclear, which is why those firms who have close relationships with it fell," said Daisuke Hashizume, a senior strategist at Daiwa Securities.

"But other chip-related shares rose, tracking their peers on Wall Street. There is an expectation that Nvidia peers may benefit from Nvidia's uncertainties."

Nvidia's NVDA.O board is meeting on Wednesday to decide whether to oust CEO Jensen Huang, a source familiar with the matter told Reuters, as the world's dominant supplier of AI processors grapples with reports of two extramarital affairs involving its longtime leader.

Chip-testing equipment maker Advantest 6857.T fell 2.89% and electronics component maker Ibiden 4062.T lost 6.11%.

On the other hand, chip-making equipment maker Tokyo Electron 8035.T rose 2.57% and memory-chip maker Kioxia 285A.T was up 2.4%.

Technology investor SoftBank Group 9984.T rose 0.67%.

Of more than 1,500 stocks on the Tokyo Stock Exchange's prime market, 64% rose, 31% fell and 3% traded flat.

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