The Nikkei 225 fell sharply to a three-month low, with Tokyo Electron plunging while cybersecurity stock Trend Micro surged. Selling spread across technology stocks against the backdrop of US earnings, while buying of cybersecurity-related stocks stood out.
The Nikkei 225 fell sharply and ended trading at its lowest level in three months. The decline followed selling in technology stocks in the US market on 21 October after earnings announcements from semiconductor-related companies, which carried over to stocks in the same sector in Tokyo. Concerns about the situation in the Middle East and cyberattacks also weighed on investor sentiment.
Among stocks in focus, Tokyo Electron ended trading at ¥9,450, down ¥710 from the previous day. Major technology stocks, led by Tokyo Electron, came under heavy selling pressure after Lam Research plunged in after-hours trading in the US.
Cybersecurity-related stocks rose sharply, with Trend Micro surging to ¥7,314, up ¥585. Demand for cybersecurity stocks increased in Japan and overseas amid concern over a vulnerability in the PHP programming language.
Disco announced its results for the first half of the fiscal year ending March 2027, reporting operating profit of ¥116.6 billion, up 47.9% year on year. The results indicated growth above the forecast issued at the beginning of the fiscal year, and the stock’s subsequent reaction will be closely watched.