Japan's Nikkei rises for third day as data, earnings fuel AI optimism

Japan’s Nikkei 225 gained 0.80% to 60,942.48 by Wednesday’s midday break, extending its advance to a third session, while the Topix added 0.79% to 3,924.51. Business Recorder reported that improved corporate results and stronger-than-expected manufacturing sentiment helped revive confidence in artificial intelligence shares. A Reuters poll found Japanese manufacturers’ outlook at its best level in over five years, supported by semiconductor demand.

The optimism followed a difficult week for global AI-related stocks, which had fallen amid concerns about possible constraints on US investment. Attention is now on Nvidia’s third-quarter results next week, while SoftBank Group reported a second-quarter net loss of 1.1 trillion yen and its shares fell 3.02%. The session was mixed beyond the headline indexes: Nichirei rose 8.18%, while Mitsui Kinzoku dropped 7.28%.

The move offers a snapshot of how semiconductor demand and earnings expectations are shaping Japan’s market sentiment. For Pakistani investors, the report is relevant as an update on international technology and equity-market trends, rather than a direct development involving a listed Pakistani company.