Last week’s Jakota markets:
- Japan’s Nikkei 225 jumped 6.3% to fresh records, posting its strongest monthly gain since 1994 as the BoJ kept rates unchanged and Finance Minister Katayama warned of monitoring the yen “with a high sense of urgency”
- South Korea’s KOSPI climbed 4.2% past 4,100, lifted by Nvidia’s massive GPU deployment plans and President Lee’s finalised $350 billion U.S. investment deal with President Trump
- Taiwan’s TAIEX rose 2.5%, bolstered by upwardly revised growth forecasts of 7.64% for the third quarter and sustained demand for AI applications
- The JAKOTA Blue Chip 150 Index posted a 2.6% gain, with semiconductor equipment maker Advantest jumping 35% on robust earnings and electric motor manufacturer Nidec sinking 23.5% amid potential delisting risks
Japan
Japan’s stock market surged to record highs this week, with the Nikkei 225 jumping 6.3%. The index’s 16.6% gain in October marked its strongest monthly performance since January 1994, buoyed by the Bank of Japan’s (BoJ) decision to keep interest rates unchanged and growing optimism over potential large scale fiscal stimulus. Technology shares rallied alongside a surge in Nvidia shares that pushed the chipmaker’s market capitalisation above $5 trillion for the first time, while strong quarterly results from Amazon added to the momentum.
At the BoJ’s press conference, Governor Kazuo Ueda struck a hawkish tone, reiterating that “the likelihood of a rate hike is increasing.” He shifted focus away from underlying inflation, emphasising instead the importance of monitoring developments ahead of next spring’s wage negotiations, particularly in the auto sector, which remains vulnerable to tariff pressures.
Finance Minister Satsuki Katayama on Friday issued a warning on the yen, saying the government is monitoring foreign exchange movements “with a high sense of urgency” as the currency hovers near a nine month low. “The government has been monitoring, with a high sense of urgency, excessive fluctuations and disorderly movements in the currency market, including those driven by speculators,” Ms. Katayama said at a regular press briefing.
On the data front, core consumer prices in the Tokyo area rose 2.8% year-over-year in October, up from 2.5% in September, beating market expectations and remaining above the BoJ’s 2% target.
Retail sales surprised to the upside, climbing 0.5% from a year earlier after a 0.9% decline the previous month. The unemployment rate held steady at 2.6% in September, matching the highest level since July 2024.
South Korea
South Korean equities rallied this week, with the KOSPI climbing 4.2% to top the 4,100 level, driven by investor optimism over U.S. chipmaker Nvidia’s AI chip supplies to Korean companies and the Seoul-Washington trade deal.
Nvidia announced plans to deploy as many as 260,000 graphics processing units (GPUs) in South Korea in collaboration with the government and major domestic companies including Samsung Electronics and Hyundai Motor, as part of an initiative to establish large scale AI factories in the country.
Seoul and Washington finalised details of South Korea’s $350 billion investment pledge during a summit between President Lee Jae Myung and U.S. President Donald Trump on Wednesday. Under the agreement, South Korea will invest $200 billion in cash in the U.S., with annual investments capped at $20 billion, while the remaining $150 billion will go towards joint shipbuilding cooperation projects.
Taiwan
Like other Jakota markets, Taiwan’s stock market advanced this week, with the TAIEX gaining 2.5% amid U.S.-China trade talks and Nvidia’s AI optimism.
Taiwan’s economy is projected to expand 7.64% in the third quarter, 4.73 percentage points above the August forecast, with full year growth expected to reach 5%, according to data from the Directorate General of Budget, Accounting and Statistics (DGBAS). The stronger than expected performance was largely driven by robust exports, which significantly outpaced earlier projections.
Meanwhile, business sentiment among Taiwan’s export oriented manufacturers improved for a third straight month in September, supported by growing demand for AI applications and a rebound in consumer electronics orders, according to the Taiwan Institute of Economic Research (TIER).
JAKOTA Blue Chip 150 Index
The JAKOTA Blue Chip 150 Index advanced 2.6% this week. Of the 150 constituents, 85 stocks posted gains.
Advantest, a Japanese manufacturer of automatic test equipment for the semiconductor industry, emerged as the top performer on the JAKOTA Blue Chip 150 Index this week, with shares surging around 35% following robust fiscal second quarter results and a raised full year outlook. A key supplier to Nvidia, Advantest has benefitted from surging demand for chips and testing equipment as global AI development accelerates.
Operating profit for the July-September quarter soared nearly 71% to ¥108.4 billion, driven by a 38% increase in revenue to ¥262.9 billion. Advantest raised its annual operating profit forecast by 25% to ¥374 billion, citing investment in AI that is expected to continue powering strong earnings growth.
The company also lifted its fiscal 2026 sales forecast to ¥950 billion from ¥835 billion, with projected net income rising to ¥275 billion from a prior estimate of ¥221.5 billion.
Nidec, a Japanese manufacturer and distributor of electric motors, led the losses on the JAKOTA Blue Chip 150 Index, with shares plummeting 23.5% this week amid growing concerns over a potential delisting from the Tokyo Stock Exchange (TSE).
Nidec has been designated a “security on special alert,” effective Tuesday, the TSE said in a statement. The designation initiates a potentially years long monitoring process during which Nidec must demonstrate that its internal management and governance systems are properly strengthened. Failure to show sufficient improvement could result in delisting.
Separately, Nikkei said Nidec will be removed from the blue chip Nikkei 225 Stock Average following the designation and will be replaced by electronics maker Ibiden.
The company’s troubles intensified last month after it was revealed that senior executives may have been involved in accounting irregularities at several subsidiaries. The crisis deepened further last week when Nidec withdrew its annual profit guidance, cancelled a share buyback program and announced it would suspend its interim dividend for the fiscal year ending March 2026.
