The Nikkei 225 is highly likely to extend its decline in the Tokyo stock market on the 2nd, with selling expected to intensify as Kioxia Holdings' earnings outlook falls short of market expectations. The Nikkei's downside is seen at around ¥61,800.
The Nikkei 225 is expected to extend its decline in the Tokyo stock market on the 2nd, while Kioxia Holdings' earnings outlook, presented when it announced its results late last week, has reportedly fallen below market expectations. This could intensify selling, raising concerns about its impact on Japanese stocks as a whole.
Kioxia's consolidated operating profit outlook for April-December 2026, released on 30 October, is seen as falling short of market expectations. This is expected to spill over into other artificial intelligence (AI) and semiconductor stocks, with a substantial drag on the overall market considered likely.
The Nikkei's downside target is projected at around ¥61,800, approximately ¥1,500 below the previous week's closing level of ¥63,290. Attention is expected to focus on further developments depending on market conditions.
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