Japan's Nikkei rises as SoftBank Group trims losses; Topix hits new high

By Junko Fujita

TOKYO, Nov 12 (Reuters) - Japan's Nikkei share average rose on Wednesday, extending gains after SoftBank Group trimmed losses, while Sony Group helped the broader Topix to close at a fresh high on a robust annual profit forecast.

The Nikkei .N225 closed 0.43% higher at 51,063.31 in choppy trade. The broader Topix .TOPX jumped 1.14% to a record high close of 3,359.33.

SoftBank Group 9984.T ended 3.46% lower, after falling 10%, as the technology investor disclosed its sale of Nvidia NVDA.O stake for $5.8 billion.

Heavyweight chip-related shares fell, with Advantest 6857.T and Tokyo Electron 8035.T down 0.23% and 1.55%, respectively.

"SoftBank Group pared losses, while investors bought stocks across various sectors, which helped the Nikkei to end higher," said Shota Sando, market analyst at Tokai Tokyo Intelligence Laboratory.

TDK 6762.T, maker of electronic components, jumped 4.92% to become the biggest source of the Nikkei's gains, while drugmaker Chugai Pharmaceutical 4519.T rose 4.37%.

Mitsui Kinzoku 5706.T, a maker of materials for AI-data centres, surged 23.27% after raising its annual profit forecast by 75%.

"The optimism surrounding artificial intelligence-related shares is still alive as investors scooped up AI-related shares with strong outlook," said Hitoshi Asaoka, chief strategist at Asset Management One.

Sony 6758.T rose 3.67% after the game and audio equipment maker raised its operating profit forecast for the year ending March 2026 by 8%.

Bank shares rose, with Mitsubishi Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T gaining 3.38% and 1.95%, respectively.

Of the more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 78% rose, 19% fell and 2% traded flat.

Sumco 3436.T tanked 20.16% to become the biggest percentage loser on the Nikkei, after the silicon producer forecast a 16.9 billion yen annual net loss, bigger than analysts' expectations of a 5.2 billion yen loss.