The Nikkei 225 extended its decline in the Tokyo stock market, ending at ¥63,081.86, down ¥208.25 from the previous weekend. Kioxia plunged approximately 15%, weighing on the index, while gains in semiconductor-related stocks supported the market.
The Nikkei Stock Average extended its decline in the Tokyo stock market on the 2nd, ending at ¥63,081.86, down ¥208.25 from the previous business day. Kioxia Holdings' earnings outlook fell short of market expectations, sending its shares down approximately 15% and weighing heavily on the index. The stock was down more than 17% at one point during the morning session, hitting its lowest level since April.
By contrast, semiconductor equipment stocks including Tokyo Electron were bought, with share prices rising on strong earnings. They added more than ¥400 to the Nikkei 225, while Advantest was also bought, providing support for the market. Strength in the KOSPI also helped restore investor sentiment.
Selling of AI-related stocks led the Japanese market after U.S. stocks fell at the end of the previous week and the SOX Index plunged, but the impact on the broader market was limited to Kioxia's sharp decline. A desire to assess the results of the U.S. midterm elections encouraged position adjustments, and a wait-and-see mood spread across trading.
Kioxia's sharp decline reflected cautious market views on the pace of recovery in memory markets and the sustainability of AI demand, while strong earnings from major equipment manufacturers were seen as supporting AI-related investment. Investors' focus is shifting to the impact of the U.S. midterm election results on semiconductor policy.