Reuters_ Japan's Nikkei index snapped a six-session losing streak on Friday, driven by a rebound in AI-related stocks; however, gains were capped by caution ahead of corporate earnings reports and the U.S. midterm elections.
The Nikkei index rose 1.39 percent to 65,324.29 points after dropping nearly five percent in the previous session. The index fell 5.37 percent over the week.
The broader Topix index gained 1.67 percent to 4,066 points, but declined 0.95 percent over the week.
Daisuke Hashizume, analyst at Daiwa Securities, said, “Stocks rebounded as investors repurchased shares following the sharp losses in the previous session… and there were no other drivers behind these gains.”
He added, “Market participants see no compelling reason to aggressively buy shares ahead of corporate earnings announcements and the U.S. midterm elections next month.”
Hashizume further noted that markets are monitoring whether the election results will impact U.S. President Donald Trump's proposals to distribute $5,000 to adults in the United States and increase military spending.
In Japan, chip-making equipment maker Tokyo Electron rose 2.56 percent, memory chip maker Kioxia climbed 3.84 percent, and tech investor SoftBank Group advanced 1.9 percent.
Advantest, a chip-testing equipment manufacturer, erased early losses to close up 0.55 percent.
BayCurrent surged 17.25 percent, becoming the top percentage gainer on the Nikkei index, after the consultancy firm announced it would use surplus cash for investments and share buybacks.
Banks supported the Topix index, with Mitsubishi UFJ Financial Group rising 1.82 percent and Mizuho Financial Group up 1.72 percent.
Among more than 1,500 stocks traded on the Tokyo Stock Exchange's Prime Market, 83 percent advanced, 14 percent declined, and two percent remained unchanged.
