TOKYO: Japan’s Nikkei share average slipped on Thursday, as technology stocks fell after artificial intelligence (AI) darling Nvidia’s forecasts failed to impress some growth-hungry investors.
The Nikkei was down 0.39% at 38,220.34 by the midday recess after falling as much as 1.12% earlier in the day.
Chip-testing equipment maker Advantest, a supplier to Nvidia, declined 0.52%, while chip-making equipment giant Tokyo Electron slid 1.11%. AI-focussed startup investor SoftBank Group dropped 2.31%.
The broader Topix was off 0.29%, with a sub-index of growth shares skidding 0.36% versus a 0.22% decline for value stocks.
“Nvidia’s earnings and sales forecasts topped estimates, but not by the extent required to meet the lofty expectations of some in the market,” said Maki Sawada, an equities strategist at Nomura Securities.
“But it was another positive set of results from Nvidia, and I don’t think selling is going to continue for very long.”
On top of the moves in Japanese shares, investors also need to keep an eye on the direction of U.S. stock futures, she said.
Nikkei rebounds as softer yen trumps tech losses
Futures for the tech-heavy Nasdaq were down 0.88% as of 0230 GMT.
Electronic component maker Nidec was the Nikkei’s biggest decliner, slumping more than 4% after U.S. server manufacturer Super Micro Computer – with which it is building water-cooling modules for servers – delayed the filing of its annual report, sending its shares tumbling 25%.
At the other end, insurers were the top performers among the Tokyo Stock Exchange’s 33 industry groups with a 1.3% jump. Sompo Holdings climbed 2.58% to be the biggest gainer on the Nikkei. Tokio Marine Holdings added 1.85%.
Drugmakers continued their strong run, rising 0.57%, led by a 2.14% advance for Daiichi Sankyo.
Sumitomo Pharma, however, retreated 2.92% after rising to a fresh 13-month high earlier in the session.
Of the Nikkei’s 225 components, 146 fell versus 74 that rose, with five flat.
Source: Brecorder
