(Updates prices, adds Tokyo Electric share move in paragraph 9)
By Rocky Swift
TOKYO, Nov 20 (Reuters) - Japan’s Nikkei share average rose on Thursday, snapping a four-day decline, after strong results from Nvidia (NVDA.O) eased valuation concerns over the artificial-intelligence sector.
The Nikkei 225 Index (.N225) briefly climbed above the key psychological 50,000 figure before losing some momentum in the afternoon. The gauge closed up 2.7% at 49,823.94, while the broader Topix (.TOPX) gained 1.7%.
After the bell in New York, AI darling Nvidia forecast quarterly revenue well above analysts’ estimates.
Global markets have looked to the chip designer to determine whether investing billions of dollars in AI infrastructure expansion has resulted in an AI bubble.
Japanese suppliers and investors in the AI sector have been major drivers in powering the Nikkei gauge to all-time highs before a pause set earlier this month.
“Ahead of Nvidia’s results, there was heightened focus on whether AI-related profitability would justify massive infrastructure investments,” said Maki Sawada, a strategist at Nomura Securities. “Companies that had seen selling on profit-taking are now being bought back, leading to a sharp rebound in the Nikkei.”
There were 186 advancers on the Nikkei index against 38 decliners. AI-industry heavyweights Advantest (6857.T) and Tokyo Electron (8035.T) were the biggest contributors to the index’s advance.
Fujikura (5803.T) , a major supplier of wire and cables to data centres, surged 5.9%. Shares of Sompo Holdings (8630.T) surged 10.5% after the insurer announced a buyback of 77 billion yen ($490 million) of its own shares.
Tokyo Electric Power (9501.T) was among the biggest decliners, losing nearly 4%, after the Asahi newspaper reported on mishandling of confidential documents at the utility, which aims to reopen its Kashiwazaki-Kariwa nuclear plant.
($1 = 157.0700 yen)

NVDA

Japan's Nikkei share average rose 2.7%, snapping a four-day decline, driven by Nvidia's strong results boosting the tech sector. The Nikkei briefly surpassed the 50,000 mark before closing at 49,823.94. AI-related stocks like Advantest and Tokyo Electron contributed to the rise, while Tokyo Electric Power fell nearly 4% due to mishandling of documents.

- Japan’s Nikkei share average rose 2.7% to 49,823.94, ending a four-day decline, driven by strong results from Nvidia that alleviated AI sector valuation concerns.  
- The index briefly surpassed the psychological 50,000 mark, with significant contributions from AI-related companies like Advantest and Tokyo Electron.  
- Tokyo Electric Power shares fell nearly 4% following reports of mishandled confidential documents, impacting its plans to reopen a nuclear plant.

Japan's Nikkei snaps 4-day loss as Nvidia outlook boosts tech sector