Nikkei rebounds on oil drop, Nvidia earnings in focus

Japan's Nikkei 225 reversed early losses on Wednesday, rising about 0.6% to 66,271, as falling oil prices and lower US Treasury yields eased pressure on growth stocks ahead of Nvidia's quarterly results. Advantest and SoftBank Group led gains, contributing over 300 points to the index. Advantest rose approximately 2.7% and SoftBank Group gained 2.6%, while Tokyo Electron and Kioxia lagged, showing investors avoided broad tech bets before Nvidia's report. Brent crude fell over 2% to around $86 per barrel after Iran resumed talks with Oman over the Strait of Hormuz, benefiting Japan as a major energy importer. Nvidia's earnings due after the US close are seen as pivotal for Japan's AI-linked stocks, with consensus expecting revenue near $92.2 billion and adjusted EPS of $2.09. Analysts note Advantest holds a 12.6% Nikkei weight, making Tokyo increasingly sensitive to Nvidia's outlook and AI investment cycle.