Nextera and GMO Internet Holdings led percentage gainers on the Tokyo Stock Exchange Thursday morning while Advantest clawed back part of Tuesday's slide, as the Nikkei 225 advanced more than 500 points in early calculations. The move followed September trade statistics showing exports still growing at a double-digit pace, reassuring funds that had trimmed AI hardware exposure when long-term Japanese government bond yields spiked last week.

Chip testers back in favor

Advantest, which supplies memory and logic testers to foundries worldwide, rose roughly 4 percent in early trade after shedding ground when investors worried that higher domestic rates would compress price-to-earnings multiples across the semiconductor complex. Peer Tokyo Electron and screen maker JDI Display also bounced, though volumes remained thinner than Monday's selloff session.

DISCO Corporation, scheduled to report fiscal second-quarter earnings at 16:00 JST, hung over the tape: its October 6 preliminary release showed quarterly shipments of ¥123.9 billion, up 60 percent year on year. Traders said Nextera's surge reflected both short covering and retail momentum lists published by online brokerages overnight.

Banks join the risk-on tone

Financials contributed after the 20-year JGB auction drew solid coverage ratios, easing fears of disorderly yield moves. Sony Group and Sony Financial Group sat among the heaviest index weights alongside insurer Tokio Marine, illustrating a broad rally rather than a single-theme squeeze.

Foreign investors via the morning futures book added to buying, according to desk chatter at two domestic brokerages. Currency strategists noted the yen near 158 per dollar continued to flatter exporters' earnings revisions without triggering fresh intervention rhetoric from Tokyo.

Sector dispersion matters

Not every chip name participated. Fujikura and other cable suppliers cooled, while SHIFT and several software services names sat in the red as profit-taking hit high-multiple growth stocks. Retail investors on margin accounts increased net buying in testers and equipment makers, Japan Securities Dealers Association weekly data through last Friday suggested.

Compliance officers at regional banks cautioned clients about concentration in a narrow AI basket, even as overall margin debt stayed below summer peaks.

Earnings and macro crosswinds

Thursday's calendar includes Bronco Billy parent SE Holdings and glassmaker Ishizuka Glass ahead of DISCO's call. Strategists said cautious commentary on China equipment demand could quickly reverse morning gains, especially if Brent crude resumes climbing on Middle East shipping risk.

The Bank of Japan's next policy meeting is weeks away, but board members' speeches on wage persistence remain a background bid for domestic cyclicals. For now, the narrative is simpler: trade data beat the worst fears, testers rebounded, and midcaps captured liquidity looking for beta after a choppy October.

Closing context

By midday Tokyo time the Nikkei had pared part of its opening spike yet remained firmly higher, with the TOPIX tracking a similar path. Options markets showed implied volatility edging down. Whether the recovery sticks depends on DISCO's afternoon numbers and U.S. tech earnings overnight—but Thursday morning belonged to the chip rebound and the financials that rose with it.

Futures and overseas cues

Nikkei futures on the Osaka Exchange traded above fair value before the cash open, echoing overnight gains on the Nasdaq Composite as U.S. chip designers issued upbeat data-center forecasts. Desk strategists cautioned that correlation could reverse quickly if long-end U.S. Treasury yields climb alongside JGBs, a joint move that would pressure both testers and banks simultaneously.

Short-interest data published weekly showed modest declines in Advantest and Tokyo Electron, suggesting bears covered rather than new long-only funds initiating multi-billion-yen positions. That distinction matters for sustainability: a short-cover rally can fade within sessions if earnings disappoint.

Index-weighting changes effective next month will slightly raise machinery sector exposure, a passive flow tailwind independent of earnings. Active managers said they will wait for DISCO guidance before adding tester weight beyond benchmark-neutral positions.