Japan’s Nikkei compensates for its losses and closes higher

Japan’s Nikkei index recovered its losses on Thursday after two straight sessions of decline, supported by chip-related companies, optimism about financial results and strong inflows from foreign investors.

The Nikkei index rose 0.4 percent to close at 30,801.13 points. Earlier this week, the index touched 31,352.53, the highest level since August 1990. The broader Topix index fell 0.3 percent to 2,146.15 points.

Chip testing equipment maker Advantest jumped 16.22 percent and led the semiconductor sub-index higher after forecasting strong earnings from US-based chipmaker Nvidia Corp.

Rakuten Group Co rose 0.68% after the online retailer priced a new stock offering to fund its expansion.

Japanese stocks have outperformed other major markets recently, supported by strong corporate results, increased investment in chips and optimism about favorable winds from the consumer sector as economic activities in the country return to normal after the pandemic.

Foreign investors bought a net 867.5 billion yen ($6.42 billion) of Japanese stocks in the week ending May 20, the eighth consecutive week of inflows, Finance Ministry data showed.