Nikkei, Yen, Hang Seng: Recovery after Nvidia shock – Japanese stock market recovers

Japanese chip stocks in particular can gain on Friday. At the same time, possible interest rate increases in the USA and political uncertainties in Japan are becoming the focus of investors.

Tokyo, Singapore. Asian stock markets stabilized on Friday after a turbulent week surrounding the resignation of Nvidia boss Jensen Huang.

The Nikkei index rose by 0.5 percent to 61,142 points, the broader Topix advanced by 0.1 percent.

On the Tokyo stock exchange, the Nikkei index, which includes 225 stocks, rose by 0.9 percent to 61,362 points. On a weekly basis, the Nikkei index has advanced by more than six percent.

The broader Topix was 0.4 percent higher at 3,952 points.

In China, the Shanghai stock exchange gained 0.2 percent to 3,663 points.

The CSI 300 index with the 300 most important Chinese companies on the mainland stock exchanges stagnated at 4,042 points.

MSCI's broad index of Asia-Pacific stocks outside Japan rose 0.26 percent.

In South Korea, the Kospi rose by 2.35 percent.

On Thursday, the change in leadership at Nvidia caused uncertainty. The world's largest chip company drew conclusions from the espionage affair surrounding its long-time boss Jensen Huang. The 63-year-old resigned from leadership of the company on Thursday with immediate effect. Nvidia's share price slide weighed on the entire tech sector.

At the end of the week, many AI and chip stocks rose: Advantest's shares gained 2.1 percent, Tokyo Electron rose by 1.7 percent.

Armament cuts in Japan

Political developments in Japan also became the focus of investors. According to insiders, Prime Minister Sanae Takaichi's government is planning drastic cuts in defense contracts.

The Finance Ministry proposed capping defense spending at 50 trillion to 60 trillion yen over the next five years, well below the 80 trillion yen demanded by security policymakers. The reason for this is tax cuts that Takaichi has promised to stimulate the economy.