Intel's October–December outlook fell well short of market expectations, sending Japanese stocks sharply lower, led by semiconductor stocks. The report also covers market trends after the US midterm elections and moves in domestic-demand-related stocks.
The earnings outlook announced by US-based Intel at the end of October fell well short of market expectations, sending semiconductor stocks broadly lower. In Japan, domestic-demand and financial stocks provided some support, but the impact of semiconductors hit the market hard.
The top October performers notably included IT- and consulting-related stocks, such as BayCurrent, which surged. Demand was said to be increasing for cybersecurity enhancement and risk management. Meanwhile, SoftBank Group fell on concerns about AI investment, while semiconductor and electronic-component stocks including SUMCO, ROHM, KOKUSAI ELECTRIC, and Furukawa Electric were pressured by profit-taking.
Reports increasingly highlighted that semiconductor infrastructure-related stocks were facing more difficult conditions because of concerns about AI investment and the impact of falling US stocks. Funds continued to flow into domestic-demand and leisure stocks such as Konami Group and Oriental Land, describing a market environment in which caution and expectations ahead of a year-end rally coexist.