Japanese stocks fell sharply after reports that the Russian government had signed a presidential decree placing the local subsidiaries of Japanese companies under temporary control. Among companies that announced earnings the previous day, ROHM and Kanadevia also saw large moves.
The Russian government was reported to have signed a presidential decree moving 4 local subsidiaries of JT to temporary control by Russian companies. The situation was also discussed in light of Japan Tobacco's approximately 37% share of the Russian market, and the view spread that the company's effective management control could be affected.
Following the impact of the US midterm elections, including a sharp drop in the SOX Index in the US stock market the previous day, selling of AI- and data-center-related stocks increased and spread to the Tokyo market. Stocks including Kioxia Holdings and Sony Group fell sharply, weighing on the market, particularly AI- and semiconductor-related stocks.
ROHM reported second-quarter results. Operating profit increased year on year but fell short of market expectations. Although the company raised its full-year forecast, it failed to meet recent market expectations, and its share price fell sharply. Kanadevia, meanwhile, posted a loss for the first half and cut its full-year profit outlook.
HENNGE reported second-quarter results, with operating profit rising year on year and the stock rebounding to its daily price limit. Santen Pharmaceutical announced a share buyback, while its earnings also continued to improve, indicating continued strength in the share price.