Selling spread in response to declines in US stocks, while stocks viewed favorably following their earnings announcements attracted buying. The Nikkei 225 fell before briefly recovering in the early part of the session.
US stocks fell on 2 November as selling in technology stocks prevailed, sending major equity indexes lower. The Philadelphia Semiconductor Index plunged more than 7% as investors became more risk-averse, while Amazon and Intel were affected by earnings results that fell short of market expectations.
In Japan, the Nikkei 225 was pushed down to around the previous day’s close, but funds flowed into stocks such as Tokyo Electron and Lasertec that reported strong earnings or raised their forecasts, and the index briefly recovered into positive territory during the morning session.
Kioxia Holdings’ plunge after its earnings announcement weighed on the index, while the spillover to other AI-related stocks was limited. Some investors were also seen buying back stocks while awaiting the US midterm election results.
Overall, caution strengthened in the Japanese market against the backdrop of developments in the United States, with investors broadly waiting for the results of the US midterm election count on the afternoon of 4 November.