Sony Group's first-half operating profit significantly exceeded the year-earlier period, prompting it to raise its full-year forecast. Meanwhile, concern spread over reports that JT's Russian subsidiaries may transfer management control, and the Nikkei Average fell sharply.
The Nikkei Average suffered its fifth consecutive sharp decline, closing at ¥57,434.77, down ¥3,643.13 from the previous day. Selling spread, particularly among AI-related stocks, amid data-center regulations, while the decline in the SOX index was also significant. The Nikkei Average at one point fell to ¥56,745.81, making it a day of substantial losses.
Sony Group's operating profit for the first half of the fiscal year ending March 2027 rose 42.9% year on year to ¥1.0988 trillion, and it raised its full-year forecast from ¥1.72 trillion to ¥1.87 trillion. Strong performance in the entertainment businesses, including Game & Network Services, film and music, contributed to the result, while the hit film “Spider-Man: Brand New Day” boosted sales in related businesses. The share price fell amid the weaker market environment, although it also moved higher briefly.
A presidential decree was signed placing JT's 4 Russian subsidiaries under the control of Russian companies, raising the possibility that JT could effectively lose its management rights. The development prompted concern over its roughly 40% share of the Russian market and its impact on overall earnings, leading to broader selling.
Other stock developments covered in the article included Nintendo leaving its full-year forecast unchanged as Switch 2 sales remained weak, while Sony's brief rise was also supported by the deteriorating market environment. Against the backdrop of the Nikkei Average's sharp decline, developments at Sony Group, JT and Nintendo became the market's focus as stocks to watch.