TYO:6857

Japanese Shares Nearly Flat After Historic 66,000 Morning Breakout

Japanese stocks pared a historic morning rally, sparked by overnight gains in U.S. technology shares, to finish almost entirely flat on Wednesday, as late-session profit-taking erased a major tech-driven breakout.The Nikkei 225 closed virtually unchanged, up just 3.32 points to finish at 64,999.41.Chip-related stocks in Japan spearheaded the morning sentiment, with heavyweights Advantest (TYO:6857) and Tokyo Electron (TYO:8035) both surging more than 5% intraday before trimming gains by the closing bell.On the domestic front, the yen's real effective exchange rate has dropped to its lowest level since the 1970s, severely eroding Japan's external purchasing power as persistent trade deficits and volatile oil import costs compound structural selling pressure, Nikkei reported Wednesday, citing the Brookings Institution's Robin Brooks.Meanwhile, on the corporate side, Japanese machinery manufacturer Nabtesco (TYO:6268) plans to begin mass production of fully electric power steering systems for large commercial vehicles in 2027, Nikkei reported Wednesday.Murata Manufacturing (TYO:6981) declared a year-end dividend of 35 yen per share for fiscal year 2025, matching earlier forecasts and higher than the 30 yen per share paid a year ago.

Market Chatter: Japan Profits Rise as AI Boom Lifts Chip, Power Firms

Roughly 70% of Japanese companies reported higher profit for the fiscal year ended March, led by demand tied to AI, Nikkei reported Friday.Chip-related firms drove gains, with Advantest (TYO:6857) and Disco (TYO:6146) posting record earnings, while Hitachi (TYO:6501) benefited from data center demand. Factory automation and electronics groups including Fanuc (TYO:6954), Keyence (TYO:6861) and TDK (TYO:6762) also gained, the report said.Aggregate net profit rose 8% to 12.3 trillion yen, keeping Japan on track for a fifth straight annual record if trends hold, according to the report.Weakness persisted in some sectors, with Komatsu (TYO:6301) and Tokyo Steel Manufacturing (TYO:5423) hit by tariffs, China-driven price pressure and rising energy costs, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Jefferies Adjusts Advantest's Price Target to 37,000 Yen from 30,000 Yen, Keeps at Buy

Market Chatter: Japan IPO Market Will Stay Subdued as AI Stocks Draw Investors

Japan's IPO market will remain under pressure despite strong debuts from a sake brewer and a pet food maker, as investors continue to favor AI-related stocks, Reuters reported Tuesday.Shares of Umenoyado Brewery (TYO:559A) rose about 75% on their first trading day, while Inuneko-Seikatsu (TYO:556A) gained more than 30% after listing. The gains contrast with broader weakness, with many new listings trading below their offer prices this year, the report said.Investor focus on AI leaders such as SoftBank Group (TYO:9984) and Advantest (TYO:6857) has diverted flows away from smaller, domestically focused IPO candidates. Stricter listing standards from the Tokyo Stock Exchange are also weighing on activity, with companies facing tougher valuation thresholds in coming years, according to the report.The number of IPOs in Tokyo will likely fall about 20% this year from 2025 levels, as retail investors prioritize short-term gains in large-cap technology stocks over new listings, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Advantest's Net Income Soars 133% in Fiscal Year 2025

Advantest's (TYO:6857) net income attributable to owners of the parent soared 133% to 375.4 billion yen for the fiscal year 2025 from 161.2 billion yen a year earlier.The automatic test equipment manufacturer's earnings per share increased to 515.30 yen from 218.01 yen a year ago, according to a Tokyo bourse filing on Monday.Net sales jumped 45% to 1.129 trillion yen for the full year ended March 31 from 779.7 billion yen in the prior year.In a separate disclosure, Advantest declared a final dividend of 30 yen per share or 21.8 billion yen in total, payable from June 2.For the fiscal year 2026, the company expects attributable net income of 465.5 billion yen, basic EPS of 641.61 yen, and net sales of 1.420 trillion yen.Advantest has yet to decide on dividend payment forecasts for the year.

Japan Equities Advance on Stronger Outlook, Export Growth

Japanese equities closed higher on Wednesday, with the Nikkei 225 gaining after J.P. Morgan raised its year-end target for the benchmark to 70,000 from 61,000, citing momentum in AI and a weaker yen.On Wednesday, the Nikkei 225 rose 0.4%, or 236.69 points, to close at 59,585.86.Analysts at J.P. Morgan said concerns about overheating in the Nikkei 225 outweigh improving long-term growth prospects for Japanese equities, even as crude prices stay elevated.The benchmark index climbed to a record on Wednesday, nearing the 60,000 mark, as it recovered from a broad global selloff linked to tensions in the Middle East.In economic news, Japan's trade surplus widened to 667 billion yen in March as exports grew faster than imports, with shipments to China and the U.S. offsetting a sharp slump in Middle East trade amid the Iran conflict, data from the Ministry of Finance Japan showed.The Bank of Japan said the financial system remains stable but flagged rising risks from geopolitical tensions, higher oil costs, and exposures to real estate, foreign funds and leveraged market activity.On the corporate front, Mitsubishi UFJ Financial (TYO:8306) fell over 1% after a report said it is considering offering higher deposit rates for a planned digital bank to compete on speed and cost.Tokyo Electric Power (TYO:9501) rose about 4% after securing 4.7 billion yen in fresh grants to support ongoing nuclear compensation payouts.Advantest Corporation (TYO:6857) gained around 3% after joining Applied Materials' EPIC platform and opening a Silicon Valley research center to advance chip development.

Advantest Partners With Applied Materials on Chip Development

Advantest (TYO:6857) has joined the EPIC platform of Applied Materials as an innovation partner and set up a new research center in Silicon Valley to deepen collaboration on chip development, according to a Tuesday company statement.The move is aimed at strengthening links between front-end manufacturing and back-end testing, as rising complexity in AI and high-performance computing chips drives demand for closer industry coordination.Advantest said its new Innovation Center, located on Applied Materials' campus, will support joint work on integrating manufacturing processes, inspection and final testing.The partnership is expected to help chipmakers accelerate development timelines and improve efficiency in bringing next-generation semiconductor designs to market.Advantest said closer collaboration across the supply chain will be key to addressing growing technological demands and advancing 3D packaging and other emerging technologies.