The Nikkei Average traded firmly in the early session after NVIDIA's earnings beat market expectations, but struggled to advance in the afternoon amid views that buying catalysts had been exhausted, ultimately falling ¥130 to ¥66,131 for its first decline in 3 trading days.
The Nikkei Average opened higher at ¥66,775, with buying in Japanese semiconductor stocks leading the market on the back of NVIDIA's earnings beating expectations and the stock's reaction in after-hours trading.
The index stood at ¥66,164 at the morning close, down ¥97. It rose again at times in the afternoon session, but selling ultimately prevailed amid views that the morning's buying catalysts had run their course, and the Nikkei Average eventually fell back, ending ¥130 lower at ¥66,131.
Among individual stocks, KIOXIA Holdings rebounded, rising 5.0% to ¥52,500, as expanding demand for NAND flash memory and expectations for future earnings growth were seen as positive catalysts. Ebara Corporation, meanwhile, fell 2.8% following a downgrade in its 3-level rating.
Komatsu rose as much as 2.6% to a 6-month high after reports that it would expand its mining-equipment maintenance base in the United States. Renova, a renewable-energy developer, fell 5.3% after its price target was cut, while analysts pointed to the importance of monetizing its energy-storage business at an early stage.