The Nikkei average extended its decline in the Tokyo market on the morning of the 2nd, closing the morning at ¥63,095.11, down ¥195 from the previous weekend's close. Kioxia's earnings outlook fell below market expectations and was seen as the main cause of the decline, although moves in some semiconductor stocks at times narrowed the Nikkei's loss.
The Nikkei average extended its decline in the Tokyo stock market on the morning of the 2nd, closing the morning at ¥63,095.11, down ¥195.00 from the previous weekend's close. The Tokyo Stock Exchange Price Index, or TOPIX, stood at 3,931.61 at the morning close, down 33.46 points, while the Nikkei average temporarily widened its morning decline.
One factor driving the market lower was that Kioxia Holdings announced that consolidated operating profit for April-December 2026 was expected to be 19 times the year-earlier level, but the forecast fell below market expectations. Kioxia shares temporarily fell about 17%, reaching their lowest level since April.
Buying emerged in some semiconductor stocks that reported strong results. Tokyo Electron rose, while Advantest also turned higher, at times each lifting the morning Nikkei average by more than ¥40 billion. Gains in semiconductor-heavy South Korean stocks helped limit the deterioration in investor sentiment.
As of the morning close, trading value on the Tokyo Stock Exchange Prime Market was approximately ¥3.799 trillion, and trading volume was 1.02181 billion shares. Declining issues numbered 1,056, advancing issues 446, and unchanged issues 48. Among major stocks, Toyota Motor, Hitachi and Fujitsu fell, while Panasonic Holdings, Isetan Mitsukoshi Holdings and NH Foods rose.