tokyo stock exchange stalls as nvidia's results loom
tokyo, Friday, 21 February 2025.
tokyo’s stock market lacks clear direction. Investors are cautiously awaiting nvidia’s earnings report scheduled for release next week. us tariff policy concerns add to the uncertainty. this hesitation impacts semiconductor giants with strong ties to asia. the tokyo prime market saw a turnover of approximately 2.8 trillion yen with 1.2 billion shares traded.
market overview
The Nikkei average is fluctuating around 38,678 yen, showing no clear trend [1]. Trading activity is subdued as investors await Nvidia’s financial results and remain wary of potential US tariff policies [1]. This cautious sentiment is amplified by the upcoming three-day weekend, leading to a wait-and-see approach among investors [1]. Toyo Securities’ investment information manager, Mitsuaki Shimizu, noted a restrained market, with limited movement in either direction as investors avoid committing heavily before key announcements [1].
sector performance
Specific stocks are showing varied performance [1]. Screen Holdings, Tokyo Electron, and Shin-Etsu Chemical are experiencing gains [1]. Conversely, Trend Micro, Suzuki Motor, and KDDI are underperforming [1]. Advantest, a key player in the semiconductor testing sector, recently launched SiConic, an automated silicon validation solution [3]. Jefferies adjusted Advantest’s target price upwards from 11,000 yen to 11,500 yen on February 17, maintaining a ‘buy’ rating [3]. This suggests a positive outlook for Advantest despite the overall market’s uncertainty [3].
global factors at play
JPMorgan Private Bank’s Asia Investment Strategy division identifies Japan as a preferred investment destination, citing its macroeconomic stability and safety amidst global trade uncertainties [2]. However, the potential for new US tariffs, as discussed in recent analyses by Alan Wynne and Harry Downie at JPMorgan, introduces a degree of caution [2]. The inauguration of Trump 2.0 executive orders is also casting a shadow [2]. These factors contribute to the overall market hesitancy, overshadowing the potential boost from a weaker yen, which typically enhances earnings expectations for Japanese stocks [5].
investor strategies
Investors are advised to closely monitor Nvidia’s earnings report for insights into the semiconductor industry’s trajectory [1]. JPMorgan suggests focusing beyond the Federal Reserve’s actions, implying a need to consider broader economic and geopolitical factors [2]. The market’s reaction to Advantest’s new SiConic solution and Jefferies’ price target adjustment should also be noted [3]. Active portfolio management, considering both potential risks and opportunities arising from tariff developments, is crucial in this uncertain environment [2].