Japan's Nikkei falls as Kioxia tanks, mitigated by gains in Tokyo Electron
TOKYO: Japan’s Nikkei share average traded lower on Monday as memory chip maker Kioxia tanked, while gains in Tokyo Electron and other firms with strong outlooks limited the losses. The Nikkei fell 0.31% to 63,095.11 by the midday break. The broader Topix lost 0.84% to 3,931.61. “There were negative factors such as Wall Street’s fall last week and Kioxia’s earnings,” said Kazuaki Shimada, chief…
Japan's Nikkei share average experienced a decline on Monday, as memory chip maker Kioxia reported disappointing earnings. The Nikkei fell 0.31% to 63,095.11 by the midday break, while the broader Topix lost 0.84% to 3,931.61. Kazuaki Shimada, chief strategist at IwaiCosmo Securities, cited factors such as Wall Street's fall last week and Kioxia's weaker-than-expected earnings as contributing to the market's downturn.
However, gains in Tokyo Electron and other firms with strong outlooks helped mitigate some of the losses. Tokyo Electron shares rose 5.11% after the chip-making equipment maker forecast a 50% increase in its annual group net profit, exceeding analysts' expectations. Panasonic Holdings also advanced 5.16% following the home appliances and industrial products maker's decision to raise its full-year operating profit forecast by 20% to 710 billion yen, driven by factors such as robust AI-related demand.
The US stock market suffered significant losses on Friday, with the Nasdaq experiencing its largest one-day percentage drop since June 5, following disappointing results from Intel and Amazon, which fueled concerns about companies' substantial AI-related investments. Of the 1,500-plus stocks traded on the Tokyo Stock Exchange's prime market, 28% rose, 68% fell, and 3% remained unchanged.
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