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Japan's Nikkei slips as Kioxia tumbles 13%; Tokyo Electron, Panasonic limit losses

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In short

Japanese shares fell by midday following a steep retreat on Wall Street triggered by disappointing earnings from major U.S. technology companies. Memory chip maker Kioxia served as the primary drag after slashing expectations, while top financial lenders also experienced broad-based selling pressure. However, robust performances from Tokyo Electron and Panasonic offset some of the index's losses through upgraded annual forecasts. Breadth remained decidedly negative, with roughly two-thirds of the Prime Market trading lower.

Key points

  • Disappointing results from U.S. firms like Intel and Amazon spurred a global tech selloff…: Disappointing results from U.S. firms like Intel and Amazon spurred a global tech selloff that spilled into Tokyo.
  • Negative sentiment extended into the Japanese financial sector as all three major banking…: Negative sentiment extended into the Japanese financial sector as all three major banking groups fell over 2%.
  • Panasonic Holdings gained more than 5% after raising its operating profit forecast to 710…: Panasonic Holdings gained more than 5% after raising its operating profit forecast to 710 billion yen.

Sources checked by our analysis pipeline: 1

The Nikkei 225 fell 0.31% to 63,095.11 at the midday break, while the broader Topix index declined 0.84% to 3,931.61.

According to the report, investor sentiment was subdued following a decline on Wall Street last week and disappointing corporate results from Kioxia. However, stronger-than-expected earnings and upbeat forecasts from some Japanese companies provided support to the benchmark index.

Kioxia shares plunged 13.29%, emerging as the biggest drag on the Nikkei, after the memory chip maker's outlook for the quarter through December fell short of investor expectations.

Also Read | Global Market Today: Asian shares bend under AI stress; Apple earnings loom

In contrast, Tokyo Electron gained 5.11% after the semiconductor equipment maker forecast a 50% increase in annual group net profit, exceeding analysts' expectations.

Panasonic Holdings advanced 5.16% after raising its full-year operating profit forecast by 20% to 710 billion yen ($4.51 billion). The company's improved outlook was supported by several factors, including stronger-than-expected demand related to artificial intelligence.

The weakness in Japanese equities came after a sharp selloff in US markets on Friday. The Nasdaq recorded its biggest single-day…

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