The Nikkei Average fell for a second straight session amid declines in U.S. technology stocks and higher crude oil prices. Reports that Meta's earnings could fuel concerns about its financial position have spread, and a succession of earnings announcements from AI- and semiconductor-related companies in the U.S., Japan and South Korea is expected this week.
In the Tokyo market on 23 October 2026, the Nikkei Stock Average closed at ¥62,693.16, down ¥214.68 from the previous day, reaching its lowest level in approximately three months.
Reports indicated that free cash flow would turn negative in Meta's July-September 2026 earnings, prompting speculation that concerns over the financial burden of AI investment would spread and sending U.S. technology stocks sharply lower. Selling in AI and semiconductor stocks consequently led the decline in the Tokyo market.
The Dow Jones Industrial Average fell for the first time in four sessions, while U.S. WTI crude oil futures rose against a backdrop of escalating military conflict. The spillover from the U.S. market created a situation in which caution spread across Japanese equities.
A succession of earnings announcements from AI- and semiconductor-related companies in the U.S., Japan and South Korea is scheduled for this week. Advantest and others are due to report on the 28th, Samsung Electronics and Amazon on the 29th, and Kioxia and Tokyo Electron on the 30th. Strong results could support the market, while results below expectations could trigger disappointment-driven selling.