Japan’s Nikkei share average edged up (gaining about 0.2%, after rising as much as 1% earlier in the session), while the broader Topix index advanced 0.6%. Investor sentiment was bolstered by bargain-hunting in beaten-down gaming and pharmaceutical shares, softer crude oil prices, and the digestion of the U.S. Federal Reserve’s widely anticipated 25-basis-point rate hike.
Key Market Drivers & Sector Movements
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Gaming & Pharma Rally: Investors rotated into sectors that had previously underperformed. Nintendo climbed 3.8%, Konami Group gained 3.7%, and Sumitomo Pharma jumped 4.5%.
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Oil Prices Ease: Brent crude futures dropped 2.6% overnight following reports that Saudi Arabia offered additional crude cargoes via Oman, easing supply disruption fears in the Middle East. Consequently, oil-related stocks like Inpex fell 3.3%.
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Chip Stocks Under Pressure: Gains on the Nikkei remained capped due to losses in interest-rate-sensitive technology and chip-sector heavyweights ahead of the Bank of Japan’s (BOJ) upcoming policy decision (with markets widely anticipating a 25-basis-point rate hike). Advantest and Tokyo Electron fell 1.9% and 2.2%, respectively.
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Select AI Resilience: While AI sentiment faced broader headwinds, selective names bucked the trend, with SoftBank Group gaining 1% and Fujikura rising 0.6%.
