Solid Gold Berjangka – Japan’s Nikkei 225 index fell 0.33% to close at 63,082 on Monday (Nov 2), extending losses from the previous session. The primary downward pressure stemmed from technology stocks, following a cautious performance outlook from Kioxia Holdings, which fueled concerns that the growth in demand linked to artificial intelligence may be slowing down.
Kioxia shares plummeted 15.8% after the company projected an operating profit of ¥2 trillion for the December quarter—only a marginal increase from the ¥1.99 trillion recorded in the preceding quarter. This forecast signals a deceleration compared to the robust profit growth seen over the last few quarters.
Additional pressure came from Screen Holdings, which slid 19% after management maintained its full-year outlook—despite the company reporting record-high incoming orders and sustained strong demand for semiconductor equipment. This cautious stance from management sparked fears that the growth momentum in the chip sector may no longer be as strong as it once was.
Other technology stocks also weakened: Ibiden fell 3.8%, Taiyo Yuden dropped 3%, and SoftBank Group retreated 1.6%. These declines suggest that investors are becoming more selective regarding tech stocks following a prolonged rally fueled by optimism surrounding AI demand.
In the near term, the trajectory of the Nikkei will continue to be influenced by earnings reports from the technology sector and developments in semiconductor demand. Should major companies continue to issue conservative forecasts, the pressure on chip-related stocks could persist, potentially limiting the index's room for recovery. (srh)